The Spanish government faces a major setback as the energy tax, designed to target excess profits of energy companies, is repealed.
The repeal, driven by an alliance between PP, Junts, and PNV, undermines the government’s fiscal strategy.
Initially introduced in 2022 to address soaring energy prices and inflation, the tax was part of a broader fiscal package.
Despite the repeal, the government plans to reintroduce the tax via a decree, though its approval in Congress remains uncertain.
Left-wing parties, including Podemos and EH Bildu, demand the tax’s continuation, emphasizing its importance for social equity.
Meanwhile, the fiscal package, including a 15% minimum tax on multinationals and a progressive bank tax, has been approved, signaling mixed outcomes for the government.
