Italy to Tap Banks, Insurers for €3.5 Billion in Budget Plan (3)

Prime Minister Giorgia Meloni’s cabinet is tapping Italy’s banks and insurers to help finance €3.5 billion ($3.8 billion) of its budget, in a new plan designed to deliver on giveaways pledged to voters.

Most of the amount will be raised by postponing tax deductions due to banks, Finance Minister Giancarlo Giorgetti told reporters in Rome on Wednesday. His deputy Maurizio Leo said the deferral will be for 2025 and 2026.

That move — anticipated ahead of the announcement — probably won’t impact lenders’ profitability in meaningful way, according to analysts, though Giorgetti called the measure “significant.”

“As we ...