London | The Italian government’s blunder over a windfall tax on banks has inflicted serious damage to Prime Minister Giorgia Meloni’s effort to project herself as a fiscally responsible steward of her country’s economy.

A partial rollback late on Tuesday night (Wednesday AEST) helped bank shares recover some of their lost ground after a precipitous drop, but the tumultuous episode has damaged the reputation of Meloni’s right-wing coalition.

Financial Times