Second conflict in Government between Calviño and Díaz over bank tax
The debate surrounding the energy and banking tax continues to spark tension within the government. A recent statement from Carlos Martin Urriza on social media suggested that the plan to make the tax permanent would not happen immediately, with officials signaling a target for the last quarter of 2024 to finalize the move. The tax was scheduled to expire at the end of 2022 and 2023, with payments aligned to February and September 2023 and 2024 respectively. This ambiguity keeps the issue alive as authorities weigh fiscal stability against broader economic goals. (Source: government communications)
As the administration wrestles with whether to extend or modify the measures adopted during the energy crisis, tension surfaces in the relationship between the first vice president and minister of Economy, Nadia Calviño, and the second vice president, Yolanda Díaz. The discussion centers on a potential bank tax reform and broader fiscal alignment rather than an outright dismantling of existing levies. Calviño has emphasized ongoing fine-tuning of the tax structure, noting changes in interest rates and energy prices compared with the past, while Díaz has underscored the commitments agreed upon by the coalition and the principle that those with greater means should contribute more. She highlighted that energy and financial utilities have shown strong pre-tax profits and should bear a greater share of the fiscal burden. (Source: government communications)
Under the coalition framework between PSOE and Sumar, a review of both taxes is planned with the aim of adapting and sustaining the measures once the current application period ends. The objective is for these sectors to continue contributing to development and tax fairness, supporting the welfare state. In the first year of operation, tax receipts reached 2.9 billion euros, with energy companies accounting for about 1.645 billion and financial institutions for approximately 1.263 billion; the expectation for the second year was expected to be similar. (Source: government communications)
The timing of the design review gained additional attention after Calviño’s election as president of the European Investment Bank, succeeding the German banker Werner Hoyer, whose term ends on January 1, 2024. The Spanish authorities have not announced a replacement timeline for the policy coordination post, but it seems unlikely that any change will stretch to the second half of next year. (Source: government communications)
In its current form, both taxes are treated as a public benefit with non-tax justifications, created to navigate potential legal hurdles in the Congress of Deputies. The energy and bank levies in Spain target entities with significant activity within the country: a 4.8% rate plus commissions on banks earning 800 million euros or more from these items in 2019, and a 1.2% rate on energy firms with turnover exceeding 1,000 million euros. The design aims to balance fiscal needs with market realities and ensure continued contributions from major players. (Source: government communications)
Regarding the energy tax, a recent development occurred after Repsol announced a pause on green investments in Spain, prompting leadership to consider redesign options to avoid penalizing new renewable initiatives. The administration described the redesign as a way to maintain energy price stability while recognizing the role of industrial projects and renewable energy in the economy. The government indicated that the reform would include measures to promote industrial investments and energy policy coverage to support these large-scale developments. (Source: government communications)
Overall, the discussions reflect a broader objective: ensure that fiscal measures are fair, financially prudent, and capable of supporting ongoing economic growth while meeting European expectations. The coalition’s approach combines a careful reassessment of tax design with a clear commitment to maintaining public services and social protections. The outcome will hinge on the balance between revenue needs and the imperative to encourage investment in energy and the financial sector, all within the evolving European policy landscape. (Source: government communications)