The bank calls on politicians to avoid seeking short-term results with the extension of a tax with potential harmful impacts on the flow of credit. The president of the Spanish Banking Association (AEB), Alejandra Kindelán, this Thursday directly asked the deputies who will vote this afternoon on the measure in the Congressional Finance Commission “to take the long view.”
“Long-term vision, please. Don’t think about short-term revenue, but about the capacities that our economy has to finance, to support families and companies in these important moments. This is a tax against growth economic. It is a tax against the social progress of the economy,” he warned during the financial conferences organized by ABC and Deloitte.
In the opinion of the president of the banking association, the tax represents “a burden” at a time when the economy needs to grow and invest, in addition to going against the trends in Europe and the supervisors’ requirements for greater solvency.
According to his calculations, the tax reduces the capital by about 50,000 million euros, an impact that when extrapolated to financing “is 250,000 average mortgages in Spain. There are many factories, many research and development projects, many, many investment needs and of financing that unfortunately the sector will have to balance. This represents a burden for the economy at a time when it is not necessary,” he added.
Kindelán criticized that its establishment also represents a “signal” because it seems that the banking sector “is a toxic sector that has negative externalities towards the economy and that has to pay”, when the industry contributed 14.4 billion to the public coffers last year. only with the corporate tax, without including the rest of the specific rates that this industry bears.
The board criticized that its preparation has been conducted in a manner that is “not very transparent with the sector”, that it has not been able to enter into public consultation during the process despite transferring its interest to the Government through the corresponding ministry.
Against his formulation, he pointed out that it implies a “fragmentation” when Europe is asking for exactly the opposite, an integration of the financial and capital markets, due to its application and because it will have a different treatment depending on the autonomous community.
Kindelán reproached that the Executive coined it as an extraordinary tax due to the increase in profits with the rate increase “and today that context has turned around” and there are growing geopolitical uncertainties that could affect the macrofinancial environment.
In this regard, he pointed to the arrival of Donald Trump to the White House with some announcements of economic policies that “are going to have very clear impacts” on world trade, regarding the open conflicts in, for example, Ukraine “that have an impact on prices.” of raw materials, in the exchange rates in the markets”, and that the markets have not yet internalized.
Another factor against that he exposed is that it limits the financing capacity when Europe faces “enormous” investment needs, recalling the Draghi Report that estimates such needs at 800,000 million euros and 75% must be covered by the private sector with the necessary support. of banking.
Given this reality, he indicated that what supervisors and organizations such as the International Monetary Fund (IMF) are asking is, precisely, for banks to reinforce levels of solvency and profitability “because curves may come.”
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