The European Central Bank (ECB) is on the brink of lambast Italian Prime Minister Giorgia Meloni after Italy stunned international leaders by introducing a €3 billion banking windfall tax.

The surprising transfer prompted concern within the monetary markets and raised questions on how effectively Rome and Frankfurt are speaking.

The ECB plans to ship an official letter to Prime Minister Meloni's authorities to remind them how essential it's to let Frankfurt learn about monetary selections beforehand.

This lack of communication appears to be a serious cause why the worth of Italy's banking shares dropped by an enormous €10 billion final week.

Reports say that the ECB's foremost workplace in Frankfurt did not learn about this tax earlier than it was introduced.

Italian day by day Corriere della Sera mentioned the ECB hadn't been instructed in regards to the banking tax. Even although the ECB cannot straight cease what Italy is doing, it has criticised comparable concepts in Spain and Lithuania prior to now.

Giorgia Meloni, who leads Italy, has usually disagreed with the ECB about the way it units rates of interest.

She has even mentioned that the financial institution's selections would possibly find yourself hurting the economic system greater than serving to with inflation.