Messina (Intesa) against the government: “Unbelievable decisions. A ten-year eco-bonus is a South American-style scheme.” And Meloni: “No, it’s a matter of justice”

“These are South American-style methods of managing debt towards one’s creditors. It is incredible what is contained in the Finance Bill.” This was stated by Carlo Messina, CEO of Intesa Sanpaolo, during today’s hearing in the Senate before the Parliamentary Commission of Inquiry into the banking, financial and insurance sectors, referring to the forthcoming budget measures. “I have a loan due next year; extend it to ten years and make it interest-free. This is due to ECB rules – and we’ll get there – but we risk triggering classification issues. But is it possible that this provision wasn’t discussed beforehand to find alternative liquidity solutions?”

The executive criticised several decisions made by the government, chief among them the decision to further increase the taxes and levies imposed on banks. As we wrote a few days ago, this situation highlights one of the government’s paradoxes: on the one hand, it is portrayed as a friend of the banks, yet on the other, it is the very same government that has often treated them as cash machines. The area where this contradiction is most clearly evident is, in fact, the forthcoming budget bill.

Prime Minister Giorgia Meloni responded to the criticism upon arriving at an intergovernmental summit in Dublin: “I’m sorry that these measures are being regarded as ‘South American’ – they are not.” According to the Prime Minister: “I would have been happier if there had been an agreement, but I think we all realise the situation.” She added: “We are all aware of the difficulties that this particular economic climate poses for many Italian citizens; at the same time, we also realise that there are sectors which have fared well in recent years, and which have done so partly thanks to the government’s measures” and “also thanks to the stability that Italy has guaranteed. So let’s try to help one another out; that is, in a way, the choice the government has made, and I consider it a choice based on fairness.”

“Intesa Sanpaolo’s tax rate is already, even before the new budget law, the highest in Europe. There is no other bank of our size in Europe with a tax rate at this level. The further afield you go, the lower the tax rate becomes,” Messina added. “For us,” he continued, “it has always been a source of pride to be based in Italy. It is a source of pride to have ensured that profits are generated in this country. It is clear, however, that there is a limit.”

“We are the leading investor in government bonds. This gives you an idea of just how closely the bank’s fortunes are linked to the country’s economic performance. As the country’s main creditor, it is in our best interests for the country to do well, but this must be achieved through mutual respect and by honouring the commitments made. We are currently incurring significant losses on government bonds,” he said.

And speaking strictly of the budget: “I believe it is very important that – as in every country in the world – when drafting financial legislation, we do not remain shut away in a backroom, but engage with those who have the expertise to help us.” He also strongly criticised the government’s decisions: “We have proposed,” he added, “measures concerning public property and the creation of Italian National Recovery and Resilience Plans (PNRRs) financed by Intesa. We are willing to reduce public debt and boost growth. Problems must be tackled in the medium and long term, not just for the next three months because there are elections in six months’ time. What is being proposed is not consistent with the Constitution.”

He added: “Without the banks, there would be no financing of public debt, because no one else could raise 600 billion euros. That is why I am convinced that when discussing issues relating to the banking sector, it is essential to consider the actual contribution that each sector makes to the other and the benefits that accrue to the various stakeholders.”