Monday, September 25

The employers press in the EU against taxes on electricity and banking in countries like Spain

The European employers’ association BusinessEurope, of which the Spanish CEOE is a member and whose leader Antonio Garamendi is vice-president, moves in the European instances against extraordinary taxes on energy companies and banks in the current context of skyrocketing prices, which countries are deploying such as Spain, as well as Italy, Greece and Belgium, among others. The European organization sent a letter to several community authorities on the last day of August in which it alerts about these measures and shows its “concern” about their effects, which they consider to damage competitiveness.

The new tax will levy 1.2% on income from energy companies and 4.8% on commissions and interest from banks

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The CEOE has informed this Tuesday of the letter, in which Spanish businessmen highlight BusinessEurope’s “alert” about “the new tax burdens on companies in Spain,” says the organization led by Antonio Garamendi.

The letter does not expressly mention Spain, as it does with other countries such as Italy, but it does refer to the two measures that the coalition government has presented to Congress and is in the parliamentary process: extraordinary taxes on energy companies and banks due to the context of rising prices and their business margins.

The Spanish employers explain that the letter was sent “on the last day of August”, destined “to the president of the Eurogroup, to the Czech presidency of the Council, as well as to the European commissioner for economic affairs and to the permanent representative ambassadors of the Twenty-seven”.

The letter warns of the impact on companies and the economic recovery of the extraordinary measures adopted, or in the discussion phase, in different Member States in tax matters. The text signed by the director general of BusinessEurope, Markus J. Beyrer, shows “concern” about the effects that he considers they may have on the competitiveness of European companies.

“European companies are focused on finding solutions to deal with the immediate consequences of the war in Ukraine and supply disruptions related to the COVID crisis. Governments and authorities, at national and EU level, must do everything possible to avoid imposing new burdens on businesses in order to preserve the economic influence of the EU. This requires ensuring that all EU policies contribute to stability and support sustained growth and employment in an increasingly uncertain economic environment.

The letter sent by the European employers points to specific taxes on banking. Spain is one of the countries that has championed this added taxation for banks due to the added benefits expected from the rise in interest rates. As the Spanish banks and employers in the sector did, BussinessEurope warns that “a specific tax can affect financial stability and the ability to lend to companies.” “The stability of the financial market is essential for the EU economy and European companies,” the letter states. “This includes ensuring that banks can adequately finance the economic recovery and the transition to the euro and ensuring that EU companies are not at a competitive disadvantage compared to their peers,” they settle.