Slovene Banks Face New Tax to Help Fix €7 Billion Flood Damage

Slovenia plans to slap a five-year tax on bank profits to help fund flood reconstruction following the country’s worst natural disaster in at least three decades.

The government announced new legislation to impose the levy amounting to 0.2% of banks’ total assets over the next half decade. It assesses the cost to rebuild at €7 billion ($7.5 billion). The European Union has already earmarked around €2 billion for the effort, while authorities are also rethinking this year’s budget to free up €520 million more.

“The banking sector will make a significant contribution to the reconstruction” after a profit surge in ...