Italy is preparing to draw billions of euros from its banking sector as Prime Minister Giorgia Meloni’s government works to balance its next budget.
Officials are exploring how to raise as much as €5 billion ($5.8 billion) from lenders without causing disruption to their balance sheets, according to people familiar with the plan.
The talks mark Rome’s latest attempt to tap financial institutions for fiscal support while maintaining stability in one of Europe’s most heavily indebted economies.
According to Bloomberg, Meloni has said the country’s banks must “help, like last year,” hinting at another coordinated contribution to ease public-finance pressures.
Government seeks deal with banks over new contribution plan
Bloomberg states that the Ministry of Economy and Finance is in discussions with the Italian Banking Association (ABI) over measures that could bring a fresh inflow into state coffers.
Officials are reviewing a series of proposals designed to generate new funds without creating fresh financial strain for the lenders.
One option under review involves taxing funds that banks had previously set aside to avoid paying a special levy imposed in 2023.
Unlocking these reserves could allow banks to resume paying dividends, which would then generate additional tax revenue for the government.
Another proposal would extend the freezing of deferred tax assets beyond 2026, further increasing Rome’s potential budget intake.
According to estimates still being finalised, Italy could raise between €2.8 billion and €5 billion, depending on how the final measures are structured.
The government aims to strike a balance between fiscal responsibility and ensuring that credit institutions remain profitable and stable.
Italian banks prepare coordinated response
The ABI, which represents Italy’s major lenders, held a meeting late Monday to discuss the proposals.
Bloomberg reports that in a statement released Tuesday morning, the association confirmed that its general director, Elio Rottigni, had been authorised to continue examining the matter with government officials.
The banks, the ABI said, unanimously agreed to contribute to Italy’s multi-year budget “in the same logic of the contributions approved last year.”
This signals broad industry cooperation at a time when policymakers are seeking to finalise the budget ahead of parliamentary submission.
The finance ministry declined to comment on the specifics of the proposals, but people familiar with the discussions said the cabinet could meet as soon as this week to review the draft measures.
Balancing fiscal pressure and financial stability
Italy’s effort to raise funds from the banking sector is part of a broader attempt to stabilise its public finances amid slowing economic growth and higher interest rates.
The government’s target aligns with the need to meet European fiscal-discipline rules while protecting social-spending commitments.
Last year’s one-off windfall tax on banks sparked controversy after it rattled investor confidence, prompting the government to revise the measure within days.
This time, officials appear determined to avoid similar market volatility by working closely with banks to reach a mutually acceptable framework.
The initiative also reflects a pragmatic approach by Meloni’s administration, which is seeking new sources of revenue without imposing widespread tax hikes or cutting welfare spending.
By encouraging voluntary participation from banks, the government aims to secure additional funds while preserving investor trust in Italy’s financial system.
Cabinet to review measures this week
Italy’s cabinet is expected to convene this week to approve the draft budget law, which will include the banking contribution as a key element of its revenue plan.
The timing is crucial as the government faces pressure to keep the budget deficit in check ahead of European Union assessments.
As per Bloomberg, officials said no final decision has been made, but the emphasis remains on collaboration between the public and private sectors.
Once an agreement is reached, the plan is likely to be submitted to parliament for debate before the end of the year.
While uncertainty remains over the final figure, Rome’s renewed dialogue with the banking sector signals a coordinated fiscal strategy designed to navigate tightening European budget constraints without destabilising the country’s financial institutions.
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