Tax On Energy Firms To Raise EUR400mn Less Than Expected-Budget Min

Amendments made to a bill imposing a windfall tax on energy firms profits will see the levy bring in EUR400mn less than was originally intended according to Budget Minister Jesus Montero. Reuters reportsthat the changes "exempt large utilities' domestic regulated activities and foreign operations."

• The changes came at the behest of minor parties in the north of Spain such as the Basque Nationalist Party and the Regionalist Party of Cantabria. Maintaining the support of these parties is important to keeping PM Pedro Sanchez's centre-left minority gov't in power, giving the regionalist groups outsized influence despite their relatively small number of seats.
• A number of energy firms have hinted that they will seek to challenge the levy in court, even with the changes made to the legislation. A further obstacle could come in the Senate, with approval of the bill as-is required to allow it to progress into law. Should Senators demand amendments, the bill will return to the Congress of Deputies, delaying its implementation further.