Italy proposes bank tax to help people with interest rate hikes, sending stocks plunging

ROME (AP) — Italian bank stocks have plunged after the Cabinet approved a proposal to apply a temporary tax on some 2023 bank profits. Transport Minister Matteo Salvini announced the tax at a Monday evening press conference. He said it was a measure of “social equity” to make up for a series of interest rate hikes from the European Central Bank. Italy’s five major banks saw their shares tumble by up to 10%. The Association of Italian Banks hasn’t yet commented publicly on the proposal, whose approval apparently took banks by surprise. It must now be converted into legislation and be approved by Italy’s Parliament.