Italian banks reject new budget law contributions

Italian banks have rejected calls for new contributions within the upcoming budget law, citing an existing three-year agreement. Antonio Patuelli, president of the Italian Banking Association (ABI), emphasized that the current agreement, involving approximately 10 billion euros in measures such as the deferral of tax deductibility and the release of capital reserves, remains valid and must be honored.

The budget law is expected to be presented to Parliament by October 20. Finance Minister Giancarlo Giorgetti is currently managing various coverage options to fund a long list of proposed measures. These include extending IRPEF tax cuts to 60,000 euros, implementing a flat tax for youth, adjusting pension ages, and abolishing the car tax. The government faces the challenge of balancing these costly intentions through increased revenue or spending cuts, as fiscal margins are projected to diminish by 2027.