Windfall profits and wealth tax: Schlein and Giorgetti are chasing taxes depending on the poll of the day

"Whilst we await the proposal to gain the necessary consensus at EU level, Meloni and Giorgetti should move from words to deeds, take the initiative and introduce this tax at national level," said Elly Schlein regarding the second letter that the Minister for the Economy, Giancarlo Giorgetti, signed alongside five other European counterparts (from Germany, Spain, Austria, Poland and Portugal) – to ask the European Union – as had already been done in April in a letter to the European Commission – to introduce a common measure to tax the windfall profits of energy companies, which have benefited from the rise in prices caused by the war in the Middle East. We must not wait for Europe to act, but must take immediate action ourselves: “We need to adopt support measures straight away for the most vulnerable households and businesses,” Schlein tells the Meloni government, adding that “a tax on extra energy profits can make a significant contribution to funding these measures”.

The strategy of the Italian government and other European countries – including the Sánchez government, whose energy policies have always served as a model for the PD – is to establish a common European mechanism – as indeed happened when the European Union authorised the ‘solidarity levy’ on energy producers in 2022 following the outbreak of the war in Ukraine – in order to defend the single market and avoid the negative consequences and distortions caused by unilateral action. Incidentally – and this is a point few are recalling at the moment – the Meloni government has already introduced a surtax on energy companies in the ‘Bollette’ decree, increasing the IRAP rate by two percentage points from 2026 to 2028 for companies trading in gas and electricity.

Leaving aside any considerations regarding the appropriateness of a windfall tax, this is a position that should sit comfortably with Campo Largo, as it was originally proposed for another tax such as the wealth tax. Schlein has expressed support for a tax on large fortunes "but at European level". This is, moreover, the same line taken by Giuseppe Conte, who, on the other hand, wants the wealth tax “at a global or at least European level”. But no. On the windfall profits tax – which comes on top of the extra IRAP – the “sovereignist” line prevails: it must be implemented at national level.

There is no economic assessment underlying this; it is purely a matter of political expediency. If it suits the polls, then Italy can go it alone, even if it means ignoring the consequences. This applies to the left’s proposal for a windfall tax, or to the Meloni government’s decision to suspend the Schengen Agreement with Spain. Conversely, if a proposal risks being unpopular, then the decision must be shifted ‘to the European level’. On the left, this applies to the wealth tax, which frightens moderates, and also to defence, which frightens pacifists. The PD’s solution is, in fact, ‘common defence’: yes to increased military spending to guarantee security against external threats, but only ‘at European level’. Otherwise, it is better to do nothing.

At its core, there is no clear idea of what the state and what Europe should do, which functions (including taxation, defence and immigration) and to what extent should be assigned at EU level and which should not. There is no comparison between a more federalist and a more nationalist vision. Instead, there is merely a clash between opposing forms of opportunism that see Europe as a means of shirking their own responsibilities.