ERC demands that the new taxes on banks and energy companies be permanent

PSOE and United We Can have achieved sufficient numbers to start processing the new taxes on banks and energy companies, but their partners will force them to negotiate.

Thomas Osborne
Thomas Osborne
14 September 2022 Wednesday 09:15
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ERC demands that the new taxes on banks and energy companies be permanent

PSOE and United We Can have achieved sufficient numbers to start processing the new taxes on banks and energy companies, but their partners will force them to negotiate. The bill presented by the parties that make up the coalition has managed this Tuesday to pass its first parliamentary examination in the Congress of Deputies between warnings. There is a party, since the final definition of the new tax figures could still undergo significant changes during the processing.

The two new extraordinary taxes have already been launched with the message, from the Socialists, that the large companies affected can make an effort. "Shoot your shoulder" is the government maxim. It has been a first debate without surprises: a large majority in favor was expected and expectations have been met. But several parliamentary groups have already made it clear that they will propose important amendments during the process, which will be quick so that the rates come into force on January 1 and the first payment occurs in February.

ERC, the main partner of the Executive, does not agree that the new taxes are temporary and has defended that they become permanent. "We have an obligation to improve" the proposal, explained its spokesperson, Joan Margall, and "make it more ambitious". The Republican group considers in this sense that the taxes are “just a patch” and that they are late. One of their priorities is to ensure that companies do not pass them on to the client, for which they are analyzing similar rates that are already applied in other neighboring countries.

Harder if possible, another reference partner of the Government, the PNV, has been shown. The Basque group has supported the consideration of the proposed law, but has demanded the agreement of the new benefits with the leasehold territories of the Basque Autonomous Community and the Navarre Foral Community. In other words, they support the new taxes as long as they are managed by the Basque and Navarre regional treasuries. If the Executive does not comply, "we will oppose it with all the means at our disposal."

In an intervention widely critical of the preparation of the new taxes, the PNV spokeswoman, Idoia Sagastizabal, has defined the benefit as "gibberish" that would have to be reformed to adapt it to European legislation. "The rush is not good," she warned. It must be remembered that one of the businessmen who has raised his voice against the new tax on energy companies has been Josu Jon Imaz, today CEO of Repsol and former president of Euzkadi Buru Batzar, the highest internal Jeltzale body. “A dialogue would have been opportune” with those affected, the government partner has dropped. Canarian Coalition will also support the bill if the new rates are adapted to the Fiscal Economic Regime (REF) of the islands.

In a very similar line to ERC, EH Bildu has manifested, for whom the new taxes are "halfway". The abertzales want more: a permanent and broader tax to increase the collection that, according to Mertxe Aizpurua, "is little".

Junts also supports the tax and has opened to negotiate. He has done so with a question raised by Míriam Nogueras: "Would you be willing to include other measures?" The main concerns of the Catalan group is that the measure does not end up being annulled by the courts and that the companies do not pass on the taxes to the citizens.

The debate has caused a wide division of opinions in the opposition bench, which is highly critical of the initiative. The PP has attacked with force against two new taxes in which they appreciate a violation of the law. The popular spokesman, Mario Garcés, has cited former socialist officials who now hold positions of responsibility in large energy companies, such as Jordi Sevilla or Antonio Miguel Carmona, to show the Executive's turn. Vox and Cs have expressed themselves in a similar line, very critical of the consequences that these taxes can cause after the notices of the affected companies.