ECB: ‘Don’t use the tax on banks to repair the finances’

“The decree-law” on the tax on banks’ additional earnings “gives that the extraordinary tax has a one-off nature. On this regard, the ECB has beforehand really useful {that a} clear separation is critical between the extraordinary nature of the proceeds and the sources of basic budgets of a authorities to keep away from their use for basic finances consolidation functions”: the ECB writes this within the authorized opinion on the tax.

“Warning should be exercised to make sure that the extraordinary tax doesn’t impression the flexibility of particular person credit score establishments to construct stable capital bases and to make sufficient provisions for higher write-downs and a deterioration in credit score high quality”, the ECB additional writes. “Limiting the flexibility of credit score establishments to take care of sufficient capital positions or to prudently construct provisions within the context of a doable decline in credit score high quality may jeopardize the sleek transmission of financial coverage measures.”

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Melissa

I’m a journalist who writes about economics and enterprise. I’ve labored within the information business for over 5 years, most just lately as an creator at World Happenings. My work has targeted on protecting the financial system information, and I’ve written extensively on subjects reminiscent of unemployment charges, housing costs, and the monetary disaster. I’m additionally an avid reader and have been recognized to jot down about books that curiosity me.