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☆ Italy windfall tax: European bank stocks bounce after tax blow is watered down
▼ + stars: | 2023-08-09 | by ( Anna Cooban | ) edition.cnn.com time to read: +2 min

London CNN —Banking stocks in Italy and elsewhere in Europe rebounded Wednesday after the country watered down a plan to whack its banks with a surprise one-off 40% tax on their windfall profits. The government’s climbdown eased investors’ fears over European banks more broadly. The Stoxx Europe 600 Banks index, which tracks 42 big banks in the European Union and the United Kingdom, gained 1.7% after shedding 3.5% the previous day. Late Monday, the government said it would impose a one-off windfall tax of 40% and would use the proceeds to support first-time home buyers and cut taxes for families and businesses. Several European countries, including Spain and the Czech Republic, have announced taxes on banks’ windfall profits in the past year as interest rate hikes by central banks have beefed up many lenders’ earnings.

Persons: ’, Giancarlo Giorgetti, Remo Casilli, Jeremy Hunt, Moody’s Organizations: London CNN — Banking, Banco, European Union, Reuters, Deutsche Bank, DB, Bank Locations: Italy, Europe, United Kingdom, Rome, Spain, Czech Republic

KKR's approach incorporates a value for TIM's fixed landline network that could top 23 billion euros ($25 billion). TIM plans to analyse in depth the terms to be proposed by KKR, one of the sources said. Having already invested 1.8 billion euros in the grid, KKR has bid for a controlling stake in a unit comprising TIM's entire domestic fixed access network and submarine cable business Sparkle. KKR is also ready to let TIM retain a stake in its landline network. Prime Minister Giorgia Meloni's administration will have a say on any deal as Rome can use its "golden powers" rules to set conditions or block bids for strategic assets such as TIM's network.

Persons: Pietro Labriola's, Giancarlo Giorgetti, Giorgia Meloni's, Giuseppe Fonte, Elvira Pollina, Valentina Za, Kirsten Donovan Organizations: KKR, TIM, Telecom Italia, Macquarie, Reuters, Vivendi, Treasury, Thomson Locations: ROME, Rome

☆ Adviser to Italy's Treasury tables proposal for windfall tax on banks
▼ + stars: | 2023-05-04 | by ( Giuseppe Fonte | ) www.reuters.com time to read: +2 min

European lenders have consistently beaten expectations in recent quarters as higher rates set by the European Central Bank (ECB) to curb inflation have driven profits higher, while leaving savers disgruntled. Government sources said last week that Economy Minister Giancarlo Giorgetti was working on a windfall tax on banks to fund relief measures for families hit by inflation, which is running above the euro zone average. Giorgetti told parliament that the government "cannot and will not" ignore the fact that banks have seen revenues increase due to higher interest rates, but have not adjusted rates on deposits accordingly. UniCredit (CRDI.MI) CEO Andrea Orcel confirmed on Wednesday that there were discussions ongoing in Italy about a new tax on banks' profits, but there was no certainty it would be introduced. Madrid is planning to raise around 6 billion euros ($6.63 billion) from a windfall tax on energy companies and banks.

☆ Italian minister warns ECB of risk from higher interest rates
▼ + stars: | 2023-04-01 | by ( Federico Maccioni | ) www.reuters.com time to read: +1 min

CERNOBBIO, Italy, April 1 (Reuters) - The outlook for the Italian economy is improving but higher interest rates designed to curb inflation could pose a threat to growth, Italy's economy minister said on Saturday, sending a warning to the European Central Bank (ECB). "Fighting inflation with monetary policy is not enough, recession cannot be the price paid for fighting inflation," Giancarlo Giorgetti said. Giorgetti is from the League party which last month criticised the ECB for pushing ahead with its latest 50 basis point rate increase despite turmoil in the banking sector. He added it would be difficult for the European Union when it comes to reintroducing budget rules that remain suspended until the end of 2023. Reporting by Giancarlo Navach and Federico Maccioni, Writing by Keith Weir Editing by Emelia Sithole-Matarise and Mark PotterOur Standards: The Thomson Reuters Trust Principles.

☆ Italy's Treasury sets up new department for state-run companies
▼ + stars: | 2023-03-16 | by ( ) www.reuters.com time to read: +2 min

ROME, March 16 (Reuters) - Italy approved on Thursday a decree to create a new department at the economy ministry in charge of managing state-controlling companies such as energy groups Enel (ENEI.MI) and Eni . Economy Minister Giancarlo Giorgetti announced the scheme in January as part of efforts to tighten the government's grip on key companies dealing with some of the most delicate corporate issues facing Italy. Under the scheme, the influential Treasury department within the ministry, led by veteran economist Riccardo Barbieri, will continue to supervise public debt management, macroeconomic policies, European and international relations as well as financial regulation. The newly created "economic department" will have its own director general and will handle the decision-making process regarding state-controlled firms, public assets and public guarantees on banking loans. Rome is expected to decide on the chairperson and CEO positions of these firms by the end of next week, government sources said.

☆ Italy may have staved off recession, economy minister says
▼ + stars: | 2023-03-06 | by ( Giuseppe Fonte | ) www.reuters.com time to read: +3 min

However, he did warn that European Central Bank rate rises would pose "serious problems" for high-debt countries such as Italy. An economic recession is widely defined as two consecutive quarters of declining GDP and the euro zone's third largest economy shrank 0.1% in the fourth quarter of 2022 from the previous three months. Prime Minister Giorgia Meloni's administration is due to unveil its new growth estimates and public finance targets next month. Annual growth is now expected at almost 1%, up from the 0.6% target set in November, a Treasury official has previously said. With the European Central Bank (ECB) raising interest rates, Giorgetti said Italy should keep following a "cautious and responsible" fiscal policy in order to lower its public debt.

☆ Wealthy G7 nations gearing up for new volley of sanctions on Russia
▼ + stars: | 2023-02-24 | by ( ) www.reuters.com time to read: +2 min

Leaders of the bloc of developed nations will meet virtually on Friday with Ukrainian President Volodymyr Zelenskiy to mark the one-year anniversary of Russia's invasion, and are expected to announce the sanctions package. Current G7 president Japan said it was considering new measures, without giving any details, and called for a unified stance towards Moscow. "Russia is refusing to change their hardline stance," Japanese Prime Minister Fumio Kishida said at a news conference to mark the anniversary. India, which has maintained a neutral stance on the conflict, does not want the G20 to discuss additional sanctions on Russia. Speaking at the G20, U.S. Treasury Secretary Janet Yellen accused Russian officials of being "complicit" in atrocities in Russia's invasion of Ukraine.

☆ EU Leaders to Clash Over Response to U.S. Green Subsidies
▼ + stars: | 2023-02-09 | by ( Kim Mackrael | ) www.wsj.com time to read: 1 min

Italy’s minister of finance and economy, Giancarlo Giorgetti, warned this week that relaxing rules on state aid to clean-tech companies risks widening the gulf between richer and poorer EU members. BRUSSELS—European leaders meeting here Thursday are set to clash over how to respond to new environmental subsidies in the U.S., in a debate that pits some of the bloc’s wealthier members against those that are less able or willing to spend heavily on industrial support. Washington last year adopted massive clean-tech subsidies that some EU officials worry could hollow out the bloc’s burgeoning green industries. In response, some officials advocate easing the EU’s own strict subsidy rules to allow for more government spending—an idea that has proved controversial.

CDP is seeking to finalise its bid after U.S. investment firm KKR (KKR.N) last week filed its own offer for the same Telecom Italia (TIM) asset. Two sources familiar with the matter told Reuters KKR's approach valued the venture at about 20 billion euros ($21.4 billion). Prime Minister Giorgia Meloni repeatedly said her government wants to secure public control of TIM's network. But there is no common ground yet within her administration on how to reach such a goal and it was no clear whether a CDP bid would receive the blessing of the Treasury. Economy Minister Giancarlo Giorgetti believes Rome has "multiple options" to put TIM's network under strategic government control, a separate source said, without elaborating.

☆ Ferrari names Lorenzo Giorgetti as chief racing revenue officer
▼ + stars: | 2023-02-07 | by ( ) www.reuters.com time to read: +1 min

MILAN, Feb 7 (Reuters) - Ferrari (RACE.MI) said on Tuesday it had appointed Lorenzo Giorgetti to the newly-created position of chief racing revenue officer, tasked with boosting long-term relations with sponsors across all racing activities. Among his previous posts Giorgetti has been chief commercial officer at Serie A soccer club AC Milan and head of commercial management in the sports division of Italian publisher RCS Mediagroup (RCSM.MI), Ferrari said in a statement. He will directly report to Ferrari's CEO Benedetto Vigna and will also cover the booming Esports field of videogame sport competitions. It comes just after Ferrari appointed Frenchman Frederic Vasseur as its new Formula One team principal in an effort to regain competitiveness in its flagship competition. Ferrari's revenues from 'sponsorship, commercial and brand', which include those earned by its Formula One racing team through sponsorship agreements, rose 11% last year to 479 million euros ($512 million).

☆ Italy committed to secure Intel investment over chip factory, minister says
▼ + stars: | 2023-01-18 | by ( ) www.reuters.com time to read: 1 min

MILAN, Jan 18 (Reuters) - Italy's government is determined to secure an investment by Intel (INTC.O) to build a chip factory in the country, the economy minister said on Wednesday. "Unfortunately, or luckily, we have had a change in the government: things have worldwide changed as regarding costs, but we are still committed", Minister Giancarlo Giorgetti said on the sidelines of a parliamentary audition. In her end-of-year news conference in December, Prime Minister Giorgia Meloni said she considered Intel's investment as highly strategic and would schedule a meeting with the company to explore ways to facilitate it. Giuseppe Fonte, writing by Alessia Pé, editing by Gianluca SemeraroOur Standards: The Thomson Reuters Trust Principles.

☆ Italy's Meloni renews criticism of euro zone bailout fund
▼ + stars: | 2023-01-12 | by ( ) www.reuters.com time to read: +2 min

ROME, Jan 12 (Reuters) - Italy's Prime Minister Giorgia Meloni on Thursday renewed her criticism of the euro zone bailout fund, a 500-billion-euro ($541.55 billion) facility held back by Rome's reluctance to ratify its recently-adopted reform. The ESM was created in 2012, replacing a temporary fund established in 2010, at the height of the euro zone's sovereign debt crisis. The ESM can offer a lifeline to euro zone governments cut off from markets, or lend to recapitalise banks and provide precautionary credit. The fund was reformed with a 2021 treaty that needs to be ratified by all members of the euro zone before it can enter into force, and Italy is the only country that is dragging its feet over the issue. New ESM tasks under the reformed treaty include providing a backstop to the Single Resolution Fund, which is responsible for dealing with failing banks in the context of the Banking Union.

☆ Analysis: Italy's rates clash with ECB a sign of things to come for euro zone
▼ + stars: | 2022-12-20 | by ( Francesco Canepa | ) www.reuters.com time to read: +4 min

Summary Euro zone governments offering cost-of-living subsidiesECB has warned it won't compensate for "policy errors"Clashes seen widening beyond ItalyFRANKFURT, Dec 20 (Reuters) - Attacks by Italy's new government on the European Central Bank over its plans to raise borrowing costs may be a sign of things to come for a euro zone struggling with inflation and debt. It also showed the ECB did not fear penalising the most indebted of the 19 euro zone countries, Italy among them, which tend to see their borrowing costs rise disproportionately when credit becomes more expensive. "The ECB is clearly ready to take risks with fragmentation in the euro area," Gilles Moec, chief economist at AXA Investment Managers, said. With bigger deficits to refinance and the ECB raising interest rates while also winding down its bond purchases, markets have pushed up yields across the euro zone and particularly for the weakest borrowers, such as Italy. But the ECB has been clear it won't be used to rescue countries that have made imprudent "policy errors".

☆ Italy waters down plan to promote cash payments after EU criticism
▼ + stars: | 2022-12-18 | by ( Reuters Staff | ) www.reuters.com time to read: +2 min

ROME (Reuters) - Italy will scrap part of its plans to facilitate cash payments for goods and services after criticism from European Union authorities, Economy Minister Giancarlo Giorgetti said on Sunday. FILE PHOTO: A man uses cash to pay for items while shopping in Milan, Italy, October 2, 2020. Critics say cash payments encourage tax dodgers in a country where around 100 billion euros in taxes and social contributions are evaded every year, according to Treasury data. Despite the latest developments, Prime Minister Giorgia Meloni, who took office in October, continues to be more indulgent towards cash than her predecessors. Her first budget, which must be approved by parliament before year-end, raises a limit on cash payments to 5,000 euros from next year, up from a previous ceiling of 1,000 euros.

☆ Energy price fall by March is unrealistic, Italian economy minister says
▼ + stars: | 2022-12-17 | by ( ) www.reuters.com time to read: 1 min

ROME, Dec 17 (Reuters) - Italian Economy Minister Giancarlo Giorgetti said on Saturday it was unrealistic to expect energy prices to fall by March and that the war in Ukraine will come to an end. He told an event in Rome that Italy was studyng a mechanism to shield households and business from soaring energy bills, which could enter into force next spring. Reporting by Angelo Amante and Giuseppe Fonte, Editing by Angus MacSwanOur Standards: The Thomson Reuters Trust Principles.

☆ Italy urges EU to give strong and strategic response to U.S. IRA
▼ + stars: | 2022-12-17 | by ( ) www.reuters.com time to read: 1 min

ROME, Dec 17 (Reuters) - Italy's economy minister on Saturday urged the European Union to give a strong and strategic response to the U.S. Inflation Reduction Act (IRA), which he said was posing threats to the national economy. "Some Italian companies are considering moving production to the U.S. following the IRA scheme, it would be a disaster," Economy Minister Giancarlo Giorgetti said at an event in Rome. The EU fears that the $430 billion IRA scheme, with its generous tax breaks for domestic production of energy sector components, may lure away EU businesses and disadvantage European companies, from car manufacturers to makers of green technology. Reporting by Angelo Amante and Giuseppe Fonte, Editing by Angus MacSwanOur Standards: The Thomson Reuters Trust Principles.

ROME, Dec 17 (Reuters) - The prospect of subsequent hikes in interest rates by the European Central Bank is worrying for highly indebted countries like Italy, its economy minister said on Saturday. "We have benefited as a country for several years of a favourable situation, with interest rates close to or below zero, and this is now changing," Economy Minister Giancarlo Giorgetti said speaking at an event in Rome. Ministers of the Italian rightist government criticised the European Central Bank, which raised the financial pressure on one of the euro zone's most indebted countries. Deputy Prime Minister and League leader Matteo Salvini branded the ECB's conduct "unbelievable, baffling, worrying", while Defence Minister Guido Crosetto said the move risked helping Russia to undermine Western solidarity for Ukraine. "Some Italian companies are considering moving production to the U.S. following the IRA scheme, it would be a disaster."

☆ Biden's climate plan strains trade ties with Europe
▼ + stars: | 2022-12-06 | by ( Anna Cooban | ) edition.cnn.com time to read: +7 min

The European Union and United States — together responsible for one third of global trade — have been at loggerheads in recent weeks over US President Joe Biden’s landmark $370 billion climate plan. While a trade war is unlikely, the plan is testing the transatlantic alliance and pushing Europe to consider mobilizing its own package of subsidies. The IRA is now law, and there is little appetite to bring it back to Congress to make substantive changes, he told CNN Business. The European Union has a couple of options at its disposal, analysts told CNN Business. On Monday, Italian Economy Minister Giancarlo Giorgetti said that the bloc should create its own “European IRA plan,” according to a Reuters report.

☆ Italy urges EU subsidy package in response to U.S. IRA scheme
▼ + stars: | 2022-12-05 | by ( ) www.reuters.com time to read: +1 min

ROME, Dec 5 (Reuters) - Italian Economy Minister Giancarlo Giorgetti on Monday called for a common European Union approach to support competitiveness and protect strategic production, in response to the massive subsidies in the United States' Inflation Reduction Act (IRA). The EU fears that the $430 billion IRA scheme, with its generous tax breaks for domestic production of energy sector components, may lure away EU businesses and disadvantage European companies, from car manufacturers to makers of green technology. "We are in favour of a European IRA plan with the objective of reducing inflation," Giorgetti said in a statement issued on the sidelines of a meeting with fellow euro zone finance ministers in Brussels. Giorgetti said the EU should act in a united fashion rather than follow a country-by-country approach. Reporting by Giuseppe Fonte; Editing by Gavin Jones and Sandra MalerOur Standards: The Thomson Reuters Trust Principles.

☆ Italy seeks new options for TIM with network bid seen on hold
▼ + stars: | 2022-11-29 | by ( ) www.reuters.com time to read: +2 min

The statement also reiterated that Rome was keen to secure control of TIM's network. A government source said Prime Minister Giorgia Meloni had put CDP's bid on hold. Marking a break with the past, Meloni on Friday entrusted the government's broadband strategy to Butti, who has openly criticised CDP's plans for TIM. Economy Minister Giancarlo Giorgetti this month said Butti's plans required extensive discussions within the government, which had "several options" to secure control of TIM's network. TIM, which is expected to hold a board meeting on Wednesday to discuss governance issues, had no immediate comment.

Such a plan met heavy reservations within Giorgia Meloni's new right-wing administration, which decided to put CDP's bid on hold on Monday night, two government officials told Reuters. TIM, which has been under pressure for years due to a hyper-competitive domestic market, had no immediate comment. Economy Minister Giancarlo Giorgetti this month said Butti's plans required extensive discussions within the government, which had "several options" to secure control of TIM's network. Butti, who has openly criticised CDP's plans for TIM, has called on the Treasury-owned lender to take over TIM in full to then sell its service operations, including its Brazil-listed unit. TIM is expected to hold a board meeting on Wednesday to discuss the appointment of a director to replace Renault boss Luca de Meo.

But key officials in Giorgia Meloni's right-wing government have expressed strong reservations about CDP's plans for TIM, making a non-binding bid from the state lender for the network unlikely, three sources told Reuters. Top government officials are expected to meet later on Monday to discuss plans for TIM, among other issues. Marking a break with the past, Meloni on Friday entrusted the government's broadband strategy to Cabinet Undersecretary Alessio Butti, who has openly criticised CDP's plans for TIM. Economy Minister Giancarlo Giorgetti last week reiterated that the government wants to win control of TIM's network which is deemed of strategic interest, adding such a goal can be reached in "several ways". Giorgetti also warned that Butti's plans for TIM needs to be extensively discussed within the government.

Cabinet undersecretary Alessio Butti will now be in charge of the strategy, according to a decree on Friday seen by Reuters. Butti has been critical of the previous government's plan to cut TIM's 25 billion euro ($26 billion) debt pile by selling its landline grid. The sale is a key plank of CEO Pietro Labriola's strategy to break up and revamp the battered company. The multi-billion euro offer would be part of a broader project to merge TIM's network with smaller rival Open Fiber, which is controlled by CDP. Earlier this month Giorgetti warned that Butti's plans for TIM needs to be extensively discussed within the government.

[1/5] Italian Prime Minister Giorgia Meloni speaks during a news conference to present her government's first budget in Rome, Italy, November 22, 2022. Meloni, a fiery conviction politician, has often spoken out against Italy's reliance on technocrats to solve its economic problems and lambasted alleged interference from "high international finance" and "Brussels bureaucrats". During the election campaign Meloni called in vain for her predecessor Mario Draghi to freeze the sale of a majority stake in ITA. PUSHBACKDeputy Economy and Finance Minister Maurizio Leo, an adviser to Meloni, had proposed splitting his ministry by hiving off the finance department responsible for tax matters. The head of the finance department, Fabrizia Lapecorella, has asked to move to another ministry, two sources said.

☆ Italy to press ahead with plans to sell ITA despite MSC snub
▼ + stars: | 2022-11-22 | by ( ) www.reuters.com time to read: +1 min

ROME, Nov 22 (Reuters) - Italy's government will press ahead with plans to sell a majority stake in airline ITA Airways, the successor to Alitalia, Economy Minister Giancarlo Giorgetti said on Tuesday, after shipping group MSC dropped its interest. "We are open to anybody who wants to participate in the privatisation," Giorgetti told a news conference, adding ITA Airways's data room is "always open." Shipping group MSC, which had partnered with German airline Lufthansa (LHAG.DE) earlier this year to bid for ITA, said on Monday it was no longer interested in the transaction. On the other hand, a Lufthansa spokesman said last week that the German carrier was still interested in buying into ITA. The Treasury plans to privatise ITA through a direct sale while retaining a minority, non-controlling stake in the initial stage.

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