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Banks only ones making sacrifices in budget - Giorgetti

Banks only ones making sacrifices in budget - Giorgetti

Minister's use of term had caused controversy

ROME, 16 October 2024, 18:24

ANSA English Desk

ANSACheck
- ALL RIGHTS RESERVED

- ALL RIGHTS RESERVED

(see related) Economy Minister Giancarlo Giorgetti on Wednesday presented the 2025 budget bill that the cabinet approved on Tuesday, stressing that it only imposed sacrifices on banks and insurance companies.
    Giorgetti's use of the term "sacrifices" in relation to the budget had caused controversy in the run-up to the package being approved.
    In the budget, banks, which have enjoyed high profits in recent years thanks to the ECB putting up interest rates, and insurance companies have been called on to make a 3.5-billion-euro contribution, which will to go the national health system.
    "There is a significant intervention regarding banks and insurance companies," Giorgetti told a press conference at the premier's office in Rome.
    "Some call it a tax on surplus profits, some call it a contribution.
    "I call it a sacrifice and I hope you have understood what I meant when I used this term, which has been abused in recent weeks.
    "I understand the opposition and I feel sorry for them, now that it has become clear to all the Italian people (what I meant)".
    He said that the package features "an innovative incentive mechanism" to encourage workers who have reached the retirement age to "remain in service on a voluntary basis" via "a significant incentive on the tax front".
    He said it also includes a cap in the salaries of the top officials of all public bodies and entitles that receive public money. He said the budget maintains cuts in the labour-tax wedge for people earning up to 35,000 euros that the government made in its 2023 budget law.
    He added that there will also be benefits for people earning between 35,000 and 40,000 euros a year in the new package.
    "Our number one attention is on medium-low earners, whose situation will be better than before," Giorgetti said.
    "No one will have new taxes".
   

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