Italy's lawmakers call for windfall tax on banks' energy trading profits

Italian lawmakers are urging the government to impose a one-off levy on banks' energy trading profits in the same way Rome is targeting increased earnings of energy companies

Prime Minister Mario Draghi has budgeted more than 30 billion euros ($32 billion) since January to help firms and households

Almost 11 billion euros are to come from a 25% windfall tax on energy groups that have benefited from surging oil and gas prices

But now several lawmakers from the ruling 5-Star Movement, the PD and LEU parties, have presented to parliament proposals to extend the windfall tax to banks and financial brokers that trade in gas, electricity and petroleum products.

The tax would also apply to trading in energy-related financial derivatives.

It remains to be seen whether the government will support the parties' initiative, which will be discussed in parliament over the next few days.

The windfall tax could help finance additional stimulus measures without hiking the budget deficit, something that Draghi wants to avoid.

The ruling parties are in favour of a deficit-hike worth billion of euros to boost the economy but the Treasury has so far insisted on holding public borrowing at 5.6% of national output, down from 7.2% in 2021.

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