The European Central Bank and its opinion on banking taxes
The European Central Bank (ECB) has expressed its opinion on the different taxes that are being applied to banking in Europe. According to the institution, these taxes affect the profitability of financial institutions and the granting of credit, and therefore the ECB rejects them. However, if any country decides that these taxes cease to be temporary and become permanent, the ECB is in favor of a tax similar to the one applied in Italy.
The position of the vice-president of the ECB, Luis de Guindos
The vice-president of the ECB, Luis de Guindos, has defended this position during his participation in an economic forum. According to De Guindos, the bank’s profitability has increased but its sustainability is not guaranteed over time, and there are doubts about its sustainability. Likewise, he emphasized that Italy has found an intelligent solution with a tax that facilitates the capitalization of banking institutions.
The banking tax in Italy
In Italy, a banking tax has been implemented that taxes windfall profits obtained from interest rate hikes. This tax has been modified to allow banking entities to avoid payment if they increase their capital levels. Also, unlike in Spain, tax in Italy is applied to profits and not to income.
conclusion
The European Central Bank has a clear stance on banking taxes in Europe. Although he rejects such taxes because of their impact on profitability and the provision of credit, he is in favor of a tax similar to the one in Italy if it becomes permanent. This position has been defended by the vice-president of the ECB, Luis de Guindos, during an economic forum.
