The surreal meeting of the Finance Commission last Monday in which a good part of the Government’s tax reform, including the bank tax, was defeated in the ordinary vote, only to be resurrected later, at dawn, not only with the tax to the banking but also with the door open to rescue the tax on energy companies after a dark and enigmatic political negotiation of the PSOE with the sovereignist bloc formed by ERC, Bildu and BNG, has finished tiring the banking and energy sectors, subjected for months to a back-and-forth of threats and unconnected proposals whose destination point cannot even now be glimpsed. With the bloc on the left of the PSOE apparently convinced to support the government project, under the vague commitment of a royal decree law that would extend one more year the tax on energy companies; and PNV and Junts looking the other way while this royal decree law is not materialized; The bank tax and the potential extension of the tax on energy companies seems to depend on the Government’s ability to convince Podemos, which this Tuesday announced that it will not take the bait that ERC, Bildu and BNG have accepted. Undesirable uncertainty for investmentThe political hubbub shapes a panorama of uncertainty and legal insecurity that sources from both the financial sector and the energy sector agree in pointing out as detrimental to the country’s reputation. Given the situation of uncertainty generated in the parliamentary processing of the banking tax, what reigns in the sector is confusion. Sources in the sector point out that they do not know what to expect with the ups and downs suffered by the Government’s approaches, which change every moment. Standard Related News If Spain rises to the podium of the EU countries that raise taxes the most and falls to the queue of fiscal competitiveness Bruno PérezIn this sense, beyond the usual criticism of the tax, the banks have come out in force to attack this uncertainty. Juan de Villota, director of Tax Consulting of the CECA employers’ association, has pointed out that “the situation experienced in recent days in relation to the approval of the fiscal package is generating great uncertainty and is not desirable for the markets, investors, agents. economic… In short, it is not desirable for our country. “Alejandra Kindelán, president of the AEB employers’ association, has spoken out in very similar terms against the procedure. “We need orderly, transparent processes that give confidence to citizens, investors and the market,” he highlighted, and then issued a warning: “Who is going to invest in Spain if we do not have the necessary legal certainty, if we do not know the consequences of the rules that change several times in one afternoon?”. At the level of individual entities, Juan Manuel Cendoya, general director of Communication, Corporate Marketing and Studies at Banco Santander, has emphasized that “the tax reform that we are seeing in the last few days is not the best example to enhance the attraction of foreign investment« and has stressed that the reform »breaks legal certainty« and is really »an attack on economic growth and social progress«, as stated by Ep in his intervention at the Latibex Forum held at the Madrid Stock Exchange Palace. Improvisation and lack of transparency These comings and goings regarding the application or not of the tax on energy companies have generated discomfort among companies in the sector, according to what ABC has learned from market sources. After a harsh belligerence presented mainly by the oil and gas companies, although with massive rejection by all those affected, the companies assumed a few weeks ago that everything was returning to normal. However, they have returned to the starting box, although with a condition that leaves energy companies alone. The Treasury assures that “it maintains its agreement with Junts to not tax energy companies that maintain their effective investment commitment for decarbonization”, a situation that ‘de facto’ leaves the tax without real value if there is finally some type of vote, and ends up moving forward.Related News standard No Garamendi warns of the “legal insecurity” of the lurches of the Government’s fiscal policy He highlights that companies are “more than up to the task” with their response to the DANA in ValenciaIn any case, indignation has settled in the energy field. Various sources in the sector estimate that the negotiation seems to be improvised and that, in addition, there is beginning to be a notable lack of transparency. Above all, in a scenario where there are great investment needs and long-term plans must be made. Once again, the sector has criticized the substance of the tax, beyond the form. The CECA director recalled that the tax will have “pernicious effects” not only on the banks and their financing capacity but also on the country as a whole. “Banking has been contributing substantially to the support of public expenditure and will continue to do so, but it must do so under conditions of fairness, equality and comparable to other sectors of activity and other competitors at the European level,” he added. The president of the AEB has followed a very similar line in criticizing the tax fund since it considers that “it is an attack on the economic growth and social progress of our country.” And then he expressed that the tax will arrive at a time when authorities and international organizations are asking for more “confidence, security and strength.” He has also spoken of the “signaling” that this represents for the sector. The offensive of the entities, thus, has gone ‘in crescendo’ in recent weeks until leading to one frontal attack after another against the Government’s policies, although in The sector regrets because they could perhaps have done more sooner to try to avoid the blow. Despite everything, the banks continue to think about the real possibility that parliamentary balances will ruin everything.
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