Italy waters down bank windfall tax; UK heads towards five years of lost economic growth – business live

Italy’s government have partly backtracked on their plans for a banking windfall tax, after shares in the country’s lenders tumbled yesterday.

As we covered on Tuesday, Italy’s cabinet surprisingly decided to impose a 40% windfall tax on its banks, aiming to cream off some of the billions of euros in extra profits they have received from rising interest rates.

But overnight, Italy’s finance…