“The history of windfall profit taxes is a history of failure: they distort investment and risk accelerating the deindustrialisation of Europe.” The Minister of Foreign Affairs and leader of Forza Italia, Antonio Tajani, explains why he categorically rejects the taxation of windfall profits, citing the unequivocal view of Daniel Yergin, one of the world’s leading energy experts and a Pulitzer Prize winner for ‘The Prize’, a seminal work on the history and power of oil.
And yet, oil companies are making huge profits, and there are calls from many quarters for them to help tackle the high cost of fuel.
“I am convinced that, just like banks and insurance companies, oil companies too must play their part in times of difficulty. But the government’s method is the right one: dialogue and agreement with the companies made it possible to cover the expenses until 5 September. An agreement is quite different from a tax on windfall profits.”
Why are you ruling that option out?
“The concept of non-profit does not exist. Who decides that? A bureaucrat from the European Commission, one from the ministry? There is profit and taxes are paid on profits. But we cannot make grandiose announcements or issue threats that frighten the markets and harm Italian businesses. We must not target them, starting with Eni: it would be a very serious mistake, and it would ultimately have repercussions for consumers and the public.”
The proposal was supported by Elly Schlein. But the Lega, too, is effectively taking this line.
“It’s a mistake; it spooks the markets and we lose our competitive edge. The left’s proposals for relentless action seem to me to be driven more by class hatred and social strife than by economic considerations. We liberals cannot believe that every problem can be solved by imposing a tax, following Sánchez’s socialist model. It is precisely our sound economic policy that has led the Financial Times to recognise Italy as the flagship of the European economy. And the Financial Times was held up by the left as a weapon against us.”
Forza Italia, on the other hand, cites the agreement with banks and insurance companies as a precedent.
“Over the three-year period 2026–2028, banks will contribute an additional EUR 10.2 billion to the public coffers; a further two billion will come from the insurance sector. In the first six months of 2026, banks had already paid EUR 1.2 billion more in tax than in the same period of 2025. The dispute goes beyond the taxation of windfall profits. The policy of dialogue is a winning one; that of the oppressive State is a losing one: the State cannot be the Sheriff of Nottingham”.
But, following the extension, what structural measures does the government envisage in the energy sector?
“Targeted measures for those on the lowest incomes, the middle class and businesses, ranging from the transport sector to the self-employed. We must also work towards European agreements. We cannot penalise and criminalise businesses that need to invest in refineries, thereby exacerbating the damage we are already suffering as a result of the situation in the Strait of Hormuz.”
There is also 114 billion in flexibility funding for energy. How can they be used?
“We are working on projects which, without cutting excise duties, will ease the burden on households and businesses.”
Safe is a separate chapter. You asked for almost EUR 9 billion, which is less than the 14 billion initially estimated. Why?
“Our proposal – to use Safe – has been approved. We have asked for almost EUR 9 billion because we need to do more, given the crisis, on social and health issues as well. It’s all connected to a foreign policy of peace. At the meeting in Rimini, the Apostolic Vicar of Beirut, Mons. César Essayan, thanked the Italian soldiers who brought peace to Lebanon: without funding for security, peace missions cannot be carried out.”
But, as some argue, will those resources end up being spent on US armaments?
“We decided to support Italian industry. We did not go along with the decision to purchase military equipment from the United States, but decided to give preference to our own industries. A country’s credibility attracts investment and promotes economic growth. We need stability and a serious approach.”
Defence and security also bring to mind the escalation we have seen in recent days and hours: could the Russian threats lead to NATO becoming involved?
“No. Russia is active in the areas of cyber warfare, other initiatives and fake news, but I do not believe it will resort to conventional military action. Moscow is well aware that it is far weaker than the West.”
Could the CIA director’s visit to Moscow have helped to ease tensions?
“These messages make it clear to Moscow that it is not in its interests to escalate the conflict. It is good that the Church is also taking action: anything that aims to build peace is a good thing. Wars drive up the cost of energy and fertilisers. We hope that the Strait of Hormuz can be reopened as soon as possible.”
Returning to economic policy, in the run-up to the budget, does Forza Italia’s flagship policy remain tax cuts for the middle class?
“Absolutely. We want to extend the 33 per cent IRPEF rate to cover earnings of up to EUR 60,000; reduce tax on thirteen monthly salary, with the lowest-paid paying no tax at all; and introduce a flat tax with incentives for those who earn the most. Support start-ups and offer tax relief to those who take on young people. Some measures can be implemented straight away, others in a future budget.”
What other proposals are there?
“Deduct healthcare expenses in the year in which they are incurred, not in the following year. We are also working towards reducing or abolishing vehicle tax for cars and motorbikes. Cutting taxes can boost consumption, production and government revenue. It is the liberal vision of the economy.”
