Latest news with #GiancarloGiorgetti
Bloomberg
2 days ago
- Business
- Bloomberg
Italy to Stay on Path of Fiscal Prudence, Finance Minister Says
Italy will continue to stick with the fiscal prudence that has allowed the country to reduce its borrowing costs, Finance Minister Giancarlo Giorgetti said. 'The government confirms its serious and responsible attitude toward public accounts, while at the same time supporting investments' that can help boost growth, he said in Rome on Wednesday. The minister confirmed that the deficit will continue to shrink, and will land at 3.3% of economic output this year.
Yahoo
5 days ago
- Business
- Yahoo
G-7 agrees to exclude U.S. companies from 15% minimum tax
June 29 (UPI) -- Group of Seven nations agreed to exempt U.S. companies from a 15% minimum corporate tax rate, the countries said in a joint statement. The nonbinding deal was announced Saturday but still requires approval from the 38-member Organization for Economic Co-operation and Development that established the 2021 agreement on taxing companies. G-7 nations are part of the OECED. U.S. Treasury Secretary Scott Bessent had proposed a "side-by-side solution" for American-headquartered companies that would be exempt from the Income Inclusion Rule and Undertaxed Profits Rule "in recognition of the existing U.S. minimum tax rules to which they are subject." The massive spending bill now being considered in Congress originally included a "revenge tax" that would have imposed a levy of up to 20% on investments from countries that taxed U.S. companies. "I have asked the Senate and House to remove the Section 899 protective measure from consideration in the One, Big, Beautiful Bill," Bessent wrote in a multi-post thread on X on Thursday. The House has approved the massive legislation and the Senate is considering it. "It is an honorable compromise as it spares us from the automatic retaliations of Section 899 of the Big, Beautiful Bill," Italian Finance Minister Giancarlo Giorgetti told local media. "We are not claiming victory, but we obtained some concessions as the U.S. pledged to engage in OECD negotiations on fair taxation," an unnamed French official told Politico Europe. The official called the "revenge tax" a potentially "huge burden for French companies." Trump has criticized this provision because he said it would limit sovereignty and send U.S. tax revenues to other countries. "The Trump administration remains vigilant against all discriminatory and extraterritorial foreign taxes applied against Americans," Bessent wrote Thursday. Trump has imposed a July 9 deadline for U.S. trading partners to lower taxes on foreign goods, threatening high duties on the worst offenders, including 50% on goods from the 27 European Union members. In April, a baseline tariff was imposed on most U.S. trading partners, with higher rates on certain companies and products. In 2021, nearly 140 countries agreed to tax multinational companies at the 15% minimum, regardless of where they were headquartered. In late April, the European Union, Britain, Japan and Canada agreed to exempt the United States from the 15% minimum tax on companies. "Delivery of a side-by-side system will facilitate further progress to stabilize the international tax system, including a constructive dialogue on the taxation of the digital economy and on preserving the tax sovereignty of all countries," the joint statement read. The agreement, according to the statement, would ensure that any substantial risks identified "with respect to the level playing field, or risks of base erosion and profit shifting, are addressed to preserve the common policy objectives of the side-by-side system." The G-7 includes Britain, France, Germany, Italy in Europe, as well as Canada, Japan and U.S. Before 2014, the group was known as the G-8 until Russia was expelled after annexing the Crimea region of Ukraine. The chairs of the House and Senate committees responsible for tax policy cheered the agreement. "We applaud President Trump and his team for protecting the interests of American workers and businesses after years of congressional Republicans sounding the alarm on the Biden Administration's unilateral global tax surrender under Pillar 2," Idaho Sen. Mike Crapo, chair of the Senate Finance Committee, and Missouri Rep. Jason Smith, chair of the House Ways and Means Committee, said in a press release. The agreement also, however, has its critics. "The U.S. is trying to exempt itself by arm-twisting others, which would make the tax deal entirely useless," Markus Meinzer, director of policy at the Tax Justice Network, told Politico Europe. "A ship with a U.S.-sized hole in its hull won't float." Sign in to access your portfolio
Reuters
25-06-2025
- Business
- Reuters
Italy acted properly in November Monte Paschi stake placement, minister says
ROME, June 25 (Reuters) - Italy acted properly in placing a 15% stake in state-backed bank Monte dei Paschi di Siena ( opens new tab last November, Economy Minister Giancarlo Giorgetti said, after prosecutors in Milan started an investigation into the transaction. Giorgetti said he had reiterated "the absolute correctness of the work of the men and women who worked on the placement at the ministry" to a parliamentary committee on security he was addressing when asked about the probe. Italy's economy ministry sold the stake via an accelerated bookbuilding (ABB) procedure handled by Banca Akros, the investment banking unit of Banco BPM ( opens new tab. Banca Akros said multiple times it had acted "properly and transparently" in handling the sale, after the Financial Times reported that UniCredit ( opens new tab had been unable to buy a 10% stake in MPS during the placement. The Treasury cut its stake in MPS to 11.7% from an original 64% through three share placements in around a year. The November sale was aimed at building a stable core of domestic shareholders in MPS, which Italy rescued in 2017 and had been returning to private hands. Banco BPM ( opens new tab took a 5% stake in the Tuscan bank, while fund manager Anima Holding ( opens new tab took 3% and construction tycoon Francesco Gaetano Caltagirone and the holding company of the late Ray-Ban owner Leonardo Del Vecchio took 3.5% each. "The sale was carried out under the same terms as the ones previously made," Giorgetti told reporters. The minister also said the European Commission had asked Italy for details of the placement. "We are absolutely relaxed," he added. The stake placement kicked off a long expected wave of M&A activity in Italy's banking sector that has caused upheaval.
AsiaOne
20-06-2025
- Business
- AsiaOne
Italy, pressed to boost defence spending, lashes at 'stupid' EU rules, World News
ROME — European Union budget rules are "stupid and senseless" and need to be changed to allow member states to boost defence spending as recommended by Brussels, Italian Economy Minister Giancarlo Giorgetti said on Thursday (June 19). The EU Commission has introduced flexibility clauses to allow more investment in security, but Giorgetti said their current form penalises countries such as Italy, which are under a so-called EU infringement procedure for their excessive deficits. "It is essential to find ways to bring these rules up to date with the crisis we are experiencing so that they do not seem stupid and senseless," the minister said in a statement issued by his staff on the sidelines of a meeting with euro zone peers in Luxembourg. The title of the statement was blunter, saying Giorgetti called for changes to "stupid and senseless rules". Brussels has proposed allowing member states to raise defence spending by 1.5 per cent of gross domestic product each year for four years without any disciplinary steps that would normally kick in once a deficit is more than three per cent of GDP. The plan came amid growing pressure in Europe to boost military spending to deter a potential attack from Russia and become less dependent on the United States. Highly-indebted Italy is set this year to meet the Nato defence target of two per cent of GDP through a series of accounting changes, but an alliance summit next week is expected to raise the goal to five per cent of GDP. Giorgetti said that, under the Commission's scheme, member states not subject to the EU's excessive deficit procedure would be allowed to use the extra leeway on defence without breaching budget rules, even if their deficits rise above the three per cent of GDP ceiling. However, "member states already in the infringement procedure cannot use the same flexibility," he added. In this situation Italy is reluctant to use the EU flexibility clause because it would prevent it from lowering its deficit to 2.8 per cent of GDP in 2026 from 3.4 per cent last year, as planned. "Italy is committed to a timely exit from the infringement procedure and accepting the invitation to increase defence spending would forever prevent this," Giorgetti said. Rome is also wary of any move that could harm its improving reputation on financial markets, two government officials said. Last month, credit ratings agency Moody's upgraded Italy's outlook to "positive" after rival S&P Global raised the country's rating to "BBB+" from "BBB". Italy's preferred option would be the issuance of common EU debt to finance higher defence spending, one of the officials said, but such a plan would require support from the other bloc members. [[nid:716943]]
Arab News
19-06-2025
- Business
- Arab News
Italy, pressed to lower deficit but hike defense spending, lashes at ‘stupid' EU rules
ROME: European Union budget rules are 'stupid and senseless' and need to be changed to allow member states to boost defense spending as recommended by Brussels, Italian Economy Minister Giancarlo Giorgetti said on Thursday. The EU Commission has introduced flexibility clauses to allow more investment in security, but Giorgetti said their current form penalizes countries such as Italy, which are under a so-called EU infringement procedure for their excessive deficits. 'It is essential to find ways to bring these rules up to date with the crisis we are experiencing so that they do not seem stupid and senseless,' the minister said in a statement issued by his staff on the sidelines of a meeting with euro zone peers in Luxembourg. The title of the statement was blunter, saying Giorgetti called for changes to 'stupid and senseless rules.' Brussels has proposed allowing member states to raise defense spending by 1.5 percent of gross domestic product each year for four years without any disciplinary steps that would normally kick in once a deficit is more than 3 percent of GDP. The plan came amid growing pressure in Europe to boost military spending to deter a potential attack from Russia and become less dependent on the United States. Highly-indebted Italy is set this year to meet the NATO defense target of 2 percent of GDP through a series of accounting changes, but an alliance summit next week is expected to raise the goal to 5 percent of GDP. Giorgetti said that, under the Commission's scheme, member states not subject to the EU's excessive deficit procedure would be allowed to use the extra leeway on defense without breaching budget rules, even if their deficits rise above the 3 percent of GDP ceiling. However, 'member states already in the infringement procedure cannot use the same flexibility,' he added. In this situation Italy is reluctant to use the EU flexibility clause because it would prevent it from lowering its deficit to 2.8 percent of GDP in 2026 from 3.4 percent last year, as planned. 'Italy is committed to a timely exit from the infringement procedure and accepting the invitation to increase defense spending would forever prevent this,' Giorgetti said. Rome is also wary of any move that could harm its improving reputation on financial markets, two government officials said. Last month, credit ratings agency Moody's upgraded Italy's outlook to 'positive' after rival S&P Global raised the country's rating to 'BBB+' from 'BBB.' Italy's preferred option would be the issuance of common EU debt to finance higher defense spending, one of the officials said, but such a plan would require support from the other bloc members. (Editing by Alvise Armellini and Gavin Jones)
