Italy's deputy prime minister Matteo Salvini plans to introduce a contentious levy on bank profits in next year's budget, as a looming election and stretched public finances put lenders' bumper earnings in the spotlight. The proposal comes while European banks have generated some of their best profits since before the 2008 financial crisis.

Salvini said Italy's top 10 banks might be asked for a “three-year contribution” of about 5 per cent of profits. He justified the levy by noting that a portion of these profits stems from state guarantees, and therefore from taxpayers. He praised similar taxation policies in Spain, where Prime Minister Pedro Sánchez introduced a progressive levy of up to 7 per cent on banks' net interest and commission income.

The proposal is being spearheaded by the League ahead of next year's general election. Italy's economy grew by only 0.5 per cent last year, and its debt-to-GDP ratio rose to more than 137 per cent, making it the most indebted EU economy. Italy's five largest banking groups generated more than €15bn in combined net profits in the first half of 2026, up 3.7 per cent from a year earlier.

Three years ago, a similar measure announced by surprise sent Italian bank shares tumbling before being hastily retracted. Forza Italia has opposed such measures in the past, while Brothers of Italy defends the approach. Italy's banking association ABI has opposed previous attempts, arguing the notion of “windfall profits” is misleading.