Tajani against Salvini: "Taxes on windfall profits smack of the USSR. The government must stay out of the banking game of Risk"

"I am strongly opposed to the tax on windfall profits; it smacks of the Soviet Union." These were the words of Foreign Minister Antonio Tajani upon his arrival at the Rimini Meeting, regarding the tax on banks’ windfall profits. The statements by the centre-right Deputy Prime Minister mark an escalation in a rift within the government, given that the main proponent within the centre-right for introducing the tax on banks is the other Deputy Prime Minister, Matteo Salvini of the Green Party.

“I am opposed to any suggestion of extra profit or taxes. When I hear the word ‘taxes’, I break out in hives,” said the secretary of Forza Italia. He continued: “I believe we can also work by discussing and engaging with the business community, particularly in the hydrocarbons sector. There must be a agreed dialogue during these difficult times, including from companies in the sector. But I don’t want to hear the term ‘extra profit’ – it smacks of the Soviet Union to me.”

The row is all about the banks. Tajani, in fact, responding once again to a question from Matteo Salvini on the banking sector, explained: “It is the market that is sovereign and must decide what is to be done. It is not for the government, nor is it for politicians, to meddle in the banking sector. Politicians must lay down the rules, ensure that the rules are respected, and that is all.” Yesterday, the Lega secretary, also speaking from the stage at the Meeting, had said: “Breaking up Monte dei Paschi would be a crime.” The Foreign Minister’s response is based on the premise that he and Forza Italia are “in favour of the free market”. And so: “We don’t need party-owned banks. I’m not interested in having a Forza Italia bank; what I want is an efficient banking system.”

Tajani then emphasised the importance of local banks, “which are the ones that help four million small and medium-sized enterprises and help households access credit”, but also the need “for a banking system that includes large banks capable of supporting major international transactions – in other words, a financial sector that can also help with the internationalisation of our business system”. The aim – concludes the Deputy Prime Minister – is to build “a system; it is not for politicians to decide who should do what”.

Lega Senator Claudio Borghi also commented on Tajani’s remarks, sharing our article: “I would remind Tajani that excise duties are also taxes, even if the name is spelled differently: the choice is whether they should be paid by citizens or by a sector which, thanks to those citizens, has made 200 billion in profits in just a few years. The alternative is to tear up the Stability Pact drawn up by Tajani’s party colleague, Ms Ursula von der Leyen, and run a larger deficit.”

The senator continues: “That’s fine by us too. The choice is simple: either we run up a bigger deficit and tell the EU rules that Tajani loves so much to go to hell, or we tax citizens through excise duties, or we tax the banks’ enormous and anomalous profits.” And then, Borghi concludes: “For the League, the only thing that’s not acceptable is taxing citizens; the other two options are fine. If others have different priorities, it’s only right to know this clearly.” 

Forza Italia’s national spokesperson, Raffaele Nevi, responded to Borghi: “Borghi can sleep soundly,” he said. “As long as we are here, as our secretary Tajani has repeatedly stated, there will never be any taxes on anyone,” he explained to Adnkronos. "Taxes," he continued, "always cause problems and weaken citizens and businesses, and overall prevent the country from growing. We will certainly never accept wealth taxes, nor will we tax anyone by following the Spanish example. That is the model Schlein follows."

He continues: "We are proposing a different model based on dialogue," continues the Forza Italia representative. “By engaging in constructive dialogue and prioritising the national interest, we can secure far more substantial resources from those willing to contribute than we would by imposing taxes which, as has already happened under left-wing governments, have only led to capital flight and legal disputes,” he concludes.