Not so secret now

6 April 2009 By Rachel Sanderson

Offshore accounts are thought to be worth a third of Italy s GDP. The government has lost out big time on taxes, but it could get some back now, as pressure on tax havens mounts. A criminal amnesty and a modest tax on repatriated funds could cover two thirds of the 2009 deficit.

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Funds held by Italian citizens in fiscal havens are worth E500bnE600bn, according to two people familiar with economy ministry estimates. These estimates were based upon a government amnesty bringing during 20012003.

Italy's GDP is E1.5 trillion. Its budget deficit in 2009 is forecast to reach 4.7% and rise to 6% in 2010.

At the last amnesty, 60% of funds came from Swiss bank accounts, 14% from Luxembourg and 10% from Germany.

Italy's Lombardy region, of which Milan is the capital, was the destination for nearly 70% of those funds. In total, northern Italy accounted for nearly 90% of the funds brought back.

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