Italy Warned by ECB That One-Off Taxes Hurt Investor Confidence
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Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the worldAmericas+1 212 318 2000EMEA+44 20 7330 7500Asia Pacific+65 6212 1000Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the worldAmericas+1 212 318 2000EMEA+44 20 7330 7500Asia Pacific+65 6212 1000Giorgia Meloni’s government is aiming to raise several billion euros from banks to help boost government revenue.The European Central Bank warned Italy that the government’s tendency to impose one-off levies creates uncertainty, undermines investor confidence and risks legal disputes.“The recurring introduction of ad-hoc tax provisions unduly increases policy uncertainty regarding the tax framework, damaging investor confidence and potentially also affecting credit institutions’ funding costs,” the ECB said in a legal opinion dated Monday. “In addition, perceptions that the taxation framework is uncertain may give rise to extensive litigation, creating problems of legal uncertainty.”