Spanish Government Hits Banks And Utilities With Windfall Tax

[Carl]

This seems to have taken the Spanish financial institutions by surprise, but the energy companies probably saw it coming.

https://www.ft.com/content/9214bafb-c37 ... c784dc3873

[Bee]

Can't read the article as not a subscriber. I understand the utilities windfall but how do the banks get a winfall? I know all the government subsidies given to companies during the Pandemic are considered turnover and as such are part of your end of year profit or loss which has taken people by surprise.

Bee

[Carl]

Can't read the article as not a subscriber. I understand the utilities windfall but how do the banks get a winfall? I know all the government subsidies given to companies during the Pandemic are considered turnover and as such are part of your end of year profit or loss which has taken people by surprise.

Bee

Sorry about the link Bee. It was free to read before, but now the FT have put it behind a paywall.

The Spanish Government believes the banks have started to benefit in the rise in interest rates at same time as the public still suffer.

Hopefully I have got this the right way around - the windfall tax from the energy companies will be used to help consumers, with the money raised from the banks being used to build 12,000 new homes in Madrid + free travel on short and medium state train journeys in Autumn and Winter + education scholarships for the age 16+. I think that is what the FT were reporting.

[freddo]

https://www.irishtimes.com/business/eco ... dfall-tax/