Italy imposes windfall tax on banks to plug budget gap

Italy's government, led by Vice-Premier Matteo Salvini, is imposing a mandatory solidarity contribution on banks, citing the sector's €50 billion annual profit as evidence of affordability. The measure is a fiscal tool to address the budget gap, but its size and structure remain unspecified. This signals a populist fiscal approach that could pressure Italian bank equities and weigh on broader European financial sentiment.