“We are about to approve a budget law that will require sacrifices from everyone,” said Italy’s Economy Minister Giancarlo Giorgetti during an interview at a Bloomberg event. Giorgetti emphasized the importance of Article 53 of the Italian Constitution, which calls for citizens and businesses to contribute according to their financial capacity. He referenced remarks by French President Emmanuel Macron, advocating for a tax on large companies that have reaped significant profits in favorable market conditions, and urged that all sectors contribute to the country’s financial recovery.
Giorgetti outlined that while spending cuts would be prioritized, additional revenues may also be sought. He clarified that the focus would not replicate the recent debate on banking windfall taxes but instead would involve a “rational” and “reasoned” approach, ensuring that everyone, not just banks, plays their part. His statements have been interpreted as a signal that the government is considering measures that could impact various sectors, particularly those that have profited during recent economic conditions.
The minister’s comments triggered an immediate reaction in the stock market. Milan’s FTSE MIB index dropped by 1.5%, with investors fearing that Giorgetti’s remarks pointed to new taxation on businesses that have benefited from the economic climate. Market analysts have highlighted the sensitivity surrounding potential fiscal policies as the government prepares its new budget, which is expected to be a delicate balancing act between spending cuts and revenue generation.
In response to the market turmoil, Federico Freni, Undersecretary at the Ministry of Economy and Finance, clarified Giorgetti’s statements, assuring that “there is no new tax increase being considered.” Freni emphasized that the government has no plans for higher taxes, echoing the stance of the ruling coalition. The Ministry also reiterated that small businesses are already part of a preventive tax agreement and dismissed further interpretations of Giorgetti’s words as “misleading.”
