Italian Prime Minister Giorgia Meloni has adopted a more moderate approach regarding her plans to impose a windfall tax on banks and her government's involvement in corporate affairs. In an interview with Il Sole 24 Ore, Meloni stated that the intention is not to tax banks' "legitimate profits," which comes as a relief to the financial sector after her recent surprise announcement of a new levy on lenders.
Meloni also expressed confidence that trade relations with China would not be adversely affected by any decisions made regarding a controversial infrastructure development pact signed between the two countries. This signifies a more balanced approach by the Prime Minister, who has recently been more active in the corporate space. In August, she imposed a tax on additional profits earned by banks due to the European Central Bank's interest rate hike.
The Italian government, under Meloni's leadership, has been actively involved in various sectors such as finance, aviation, and technology. Their latest move includes a decree granting the state the power to acquire a stake in Telecom Italia SpA's network business. This is part of the government's effort to exert greater control over strategic assets.
Meloni defended this policy, emphasizing that it was a deliberate choice to retain public control of the carrier's network in order to protect free markets. However, the government's interventionist approach has sparked concern among investors and markets.
Regarding the controversial Belt and Road infrastructure project with China, Meloni confirmed that its fate will be debated in parliament. The United States has pressured Italy to withdraw from the program, but Meloni assured that regardless of the pact's outcome, Italy will strive to maintain strong relations with China.
Meloni also commented on the Stability and Growth Pact, which sets rules for EU countries to ensure sound public finances and fiscal coordination. She argued that investments in ecological transition and defense should be exempt from the pact's regulations. The Prime Minister and her allies have faced ongoing clashes with the EU over budgetary issues.
Overall, Meloni's recent statements indicate a shift towards a more moderate stance, easing concerns about her government's intervention in the corporate sector and emphasizing the importance of protecting international relationships.