MILAN, November 27, 2025 – Intesa Sanpaolo CEO Carlo Messina has urged the Italian government to avoid imposing excessive taxes on banks, emphasizing the critical role financial institutions play in supporting the country’s public debt. Speaking to Il Sole 24 Ore, Messina highlighted that banks and insurers are key players in funding Italy’s economic and fiscal stability.

Background: Proposed Tax Increases

Italy is considering further hikes to the IRAP corporate tax, which targets banks and insurers, to fund budget amendments for 2026. The current draft budget already includes a two-percentage-point IRAP increase for lenders. Political sources indicate that Rome is evaluating an additional 0.5 percentage point increase, targeting only the larger banks.

Messina warned that such measures risk weakening the banking sector at a time when it is crucial for maintaining public debt stability.

Banks’ Role in Public Debt

Italian banks hold approximately €400 billion of Italy’s €3 trillion public debt, while insurers hold another €250 billion. Messina stressed that banks and insurers have historically supported public finances and continue to play a vital role in ensuring economic stability.

“I find the attitude towards the banking system wrong for a country that still needs to solve the problem of its public debt,” Messina said. “Banks and insurers had in the past, still do, and will continue to have a key role in supporting public finances. It would be good not to forget that.”

Calls for a Fairer Tax Approach

Messina urged the government to consider a broader tax base rather than singling out banks and insurers. He highlighted that banks in Italy represent less than half of a group of 22 companies generating over €1 billion ($1.2 billion) in annual profit, including several state-owned firms.

“Why not think of a wider target when it comes to supporting public finances?” he asked, calling attention to tax evasion, which he described as “shameful,” as a more pressing issue than increasing taxes on banks.

Regulatory Pressures

The Intesa CEO also noted that banks face regulatory pressures to reduce domestic debt holdings. Despite this, Italian banks and insurers remain essential to financing the country’s debt and supporting the broader economy, making careful policy decisions critical.

Implications for Italy’s Economy

Excessive taxation on banks could potentially weaken Italy’s financial system and complicate efforts to manage the country’s high public debt. Messina’s warnings underline the delicate balance policymakers must strike between raising revenue and ensuring the stability of financial institutions that underpin Italy’s economy.