The lack of Budgets leaves the tax on banking and energy “touched”, complying with the deficit or the “digital SEPI”

The extension of the Budgets Generals of the State announced after the electoral advance in Catalonia leaves star measurements in the air that the Government intended to include in its economic policy in the current year. This group of measures would include measures fiscal, economic and business. For example, extraordinary taxes on banking and energy companies, and the objective of making them permanent.

Although the Minister of Economy, Carlos Body, has assured that, at the moment, no modification of the “tax” on banking is being negotiated, because it will be reviewed for 2025. In the case of energy companies, the situation is more complicated, since the Executive was going to remodel the tax to prevent companies from rethinking their investments. It was planned to allow investments linked to industrial and decarbonization projects to be deducted, as well as allocate the profits to investments in the sector, a situation that may be put on hold if the new Accounts are not approved.

Government sources confirmed to this newspaper that, “for now, both figures will remain extended,” Therefore, there are no imminent changes. Other measures are also very much touched on, such as SEPI intervention in Telefónica or the financing of the new “digital SEPI”which now has the funds they were going to receive on hold, or the 2030 Agenda. Likewise, it remains to be known how this freeze on new investments will affect the arrival of the European fundsto its execution and to the fulfillment of the milestones and pending reforms.

Regarding the execution of European funds, the Executive ensures that the budget extension “it's not going to be any slowdown” nor will it have “any impact on its execution”, because the Extended Accounts have “enough space” for the realization of “investments and commitments provided for in the Recovery Plan itself,” said Corps, since the extended accounts have “sufficient budget credit”. The forecast is that this year more than 10,000 million euros will arrive in Spain from the new section.

As for the deficitthe Government's forecast was to reach a 3% deficit in this year, after the objective of 3.9% in 2023, but organizations such as the Bank of Spain already doubts that it will be achieved. The supervisor recognizes that the growth of economic activity in Spain “has weakened” in the second half of 2023, with a clear “loss of dynamism” and with prospects for the evolution of activity to decline in most sectors and geographic areas. The lack of Budgets can aggravate this situation.