The Spanish government plans to levy taxes against banks and electricity companies benefitting from the financial crisis
The six largest financial institutions in Spain – CaixaBank, Banco Santander, BBVA, Banco Sabadell, Bankinter and Unicaja – reported an incredible 16 billion euros in profit, while the energy companies (Repsol, Endesa, Naturgy, Cepsa and Iberdrola) reported profits of 9.5 billion in the first nine months of the year. That’s an increase of 52% on 2021.
“Business this year has been very positive. The costs of the raw material with which these companies work is triggered by the conflict and they have passed it on to consumers, so their income has multiplied,” explained Darío García, an analyst with XTB.
In the financial sphere, the rise in interest rates by central banks has made the traditional banking business far more profitable.
With these measures, the Treasury hopes to collect 3 billion from the banks between 2022 and 2033.
The move has been met with criticism from the ECB which fears that taxes against banks could “distort competition” and ultimately make banking more expensive for the consumer.
Fedea (Foundation for Applied Economics Studies) has taken things a step further, claiming that the levies are “are highly questionable and these measures have a strong ideological charge and a clear electoral motivation.”
Source: Murcia Today