Budget: banks and insurance companies suggest a contribution of up to 3 billion

Amidst the complex structure of the budget bill’s provisions, a section dedicated to banks and insurance companies is once again attempting to find its way in this year’s bill.

Meetings held at the start of the week at the Ministry of the Economy are said to have set the target: between 2 and 3 billion. It is a busy time at the Ministry of the Economy as staff work to translate all this into articles and clauses, across a range of measures ranging from the traditional approach to DTAs (Deferred Tax Assets, tax credits that can be carried forward to future years) on goodwill, the valuation of financial instruments (in accordance with IFRS 9) and the write-down of receivables, and extends to the goodwill of insurance companies. The banking sector is on high alert, as demonstrated by the repeated statements from ABI President Antonio Patuelli, who just yesterday reiterated ‘the three-year agreement worth 10.5 billion in contributions’ already signed last year with the Government. Furthermore, political consensus within the ruling coalition has yet to be reached; the coalition is divided between those, such as League Deputy Prime Minister Matteo Salvini, who are pushing for a massive levy on banks, and those, such as his Forza Italia counterpart Antonio Taiani, who say they are “strongly opposed to taxes on banks”.
The extra profits, a topic often discussed in political debate, are not part of this discussion. But taxes or no taxes, the issue remains open. “We don’t want to slap anyone in the face,” confirmed Deputy Minister for the Economy Maurizio Leo this morning, speaking in the Chamber of Deputies ahead of the vote on the electoral law; “dialogue is always open, just as it was last year; let’s try to keep it that way this year too.” The hunt for resources could also involve energy companies, although here the issue is intertwined with the ongoing debate on the cap on fuel prices. “Extra profits? Any resources diverted away from investment in the sector will create problems in the future,” warned Unem president Gianni Murano. In any case, time is running out.

The ruling coalition summit could take place on Monday. This is because the next Cabinet meeting, on Tuesday the 13th following the parliamentary vote on the deviation from the safeguard clause, is expected to see the submission of the Dpb – the Budget Policy Document – to the EU, setting out a detailed analysis of the main measures in the budget. And on that day, in order to secure the support of banks and insurance companies, decisions must have been taken. After all, on the chessboard of the funding required to finance personal income tax cuts, the renewal of the flat tax, tax relief for young people, the refinancing of the health fund and so on, there are few pieces left on the board. And they are all on the move.
In the Eurogroup, which yesterday gave the green light to the extra deficit for energy and defence ‘there was a wide-ranging debate on our proposal’ for the flexible application of the expenditure rule, said Economy Minister Giancarlo Giorgetti. But operational decisions will not be taken until the next meetings of finance ministers in Brussels, scheduled for 9 and 10 November. With no new developments on that front, the trends set out today in the Public Finance Policy Document adhere to the letter of the net primary expenditure trajectory agreed with the EU: and this, as reported in *Il Sole 24 Ore* on Sunday 4 October, means that at present there is no scope for measures that are not covered by increased revenue or spending cuts. Last year, too, for the first time in a long while, a budget was approved that was fully funded in its first year: thanks, in part, to the initial 4.4 billion of the 10.5 requested from banks and insurance companies over the three-year period.

At the very same time as attempts are being made to bolster the revenue side of the budget, where calculations are being fine-tuned regarding the ‘savings’ from the NRRP (estimates circulating so far suggest 2–4 billion) not used for the car tax exemption, the list of spending requests is growing, as it does every time the budget is due. Yesterday it was the turn of the local councils, which, through ANCI President Gaetano Manfredi, are calling for one billion for unaccompanied foreign minors, support for pupils with disabilities, utility bills and a plan to recruit 12,000 local police officers. In recent days, Health Minister Orazio Schillaci has estimated that an additional 5.5 billion is the bare minimum required for the health service. And the list is set to grow even further.