Italy raises taxes on banks and energy firms

Prime Minister Giorgia Meloni's administration expects to collect more than €5 billion from financial institutions and approximately €700 million from energy firms. Corporate tax rates will increase from 27.5% to 30.5% for banks and from 24% to 27% for insurers.

The additional revenue will help finance tax relief for middle-income households and increased public spending. Italy's budget deficit is projected to rise from 2.9% of GDP in 2026 to 3.4% in 2027. The measures could weigh on profitability across the banking and energy sectors, while raising investor attention to Italy's fiscal outlook and European bond markets.