Italian banks’ shares plunge after ministers back tax on profits

Matteo Salvini announced the tax on banks’ profits (Domenico Stinellis/AP)

Shares in Italian banks have plunged after the Cabinet approved a proposal to apply a temporary tax on some profits this year to help consumers and businesses cope with higher borrowing costs.

Transport Minister Matteo Salvini announced the tax at a Monday evening press conference, saying it was a measure of “social equity” to make up for a series of interest rate hikes from the European Central Bank (ECB).