ECB raises concerns over Spain’s proposed windfall bank tax
The European Central Bank has criticised Spain’s proposed windfall tax on its banks, warning it could damage the capital position of lenders, disrupt monetary policy and prove difficult to enforce.
Spain’s government should carry out an impact assessment on the bank tax and clarify several areas that are unclear, the ECB said in a non-binding legal opinion that raised similar objections to those it has issued about comparable moves in other EU countries.
Pedro Sánchez’s Socialist-led coalition government wants to use the temporary measure to raise a total of €3bn from lenders that would be spent on cushioning the impact of the surge in energy prices triggered by Russia’s invasion of Ukraine.
This story originally appeared on: Financial Times - Author:Barney Jopson
