- Uganda fuel truck explosion kills 11
- Austria's Grand Slam winner Thiem ends career cheered on by home crowd
- Union sees 'tight' vote on contract to end Boeing strike
- Reijnders fires AC Milan to first Champions League points with Club Brugge double
- Record-breaking Liverpool vow to improve against Leipzig
- Uganda fuel truck explosion kills at least 10
- Forest owner Marinakis banned for spitting towards officials
- ECB chief Lagarde invites Trump to visit after central bank criticism
- Blinken urges Israel to reach Gaza truce, allow more aid
- As Trump touts tariffs, Yellen says US has rejected 'isolationism'
- Argentina prosecutors deny releasing Liam Payne toxicology tests
- India, China and S.Africa leaders bolster Putin at key summit
- Windfall tax backlash menaces Spain's green energy sector
- England winger Gordon signs Newcastle contract extension
- Ex-Abercrombie CEO charged with sex crimes
- US plans to contribute $20 bn for Ukraine loan: Yellen
- Critically endangered whale species rebounds slightly
- US interest rate, election uncertainty hit stock market sentiment
- Russian dissident Navalny's memoir published worldwide
- Strong auto prices lift GM results as it eyes China revamp
- 'Dutchman' Hirscher to step out of retirement in Soelden
- UN eyes modest 2024 maritime trade growth, but future uncertain
- 70% of Cuba's population has power back after blackout
- Families separated by front line in Russia's Kursk region
- India, China and S.Africa leaders underpin Putin at key summit
- Navalny memoirs spark mix of curiosity, indifference in Moscow
- Modi calls for quick end to Ukraine conflict in talks with Putin
- Ukraine peace talks, NATO invite may hinge on US elections, Zelensky says
- Leipzig players 'not yet talking' about Klopp, says Openda before Liverpool tie
- IMF predicts slightly slower global growth in 2024 and 2025
- US interest rate, election uncertainy hit stock market sentiment
- Guardiola applauds Man City mentality ahead of Sparta Prague test
- San Siro saga continues as Inter and AC Milan propose new stadium project
- French luxury brand Chanel to sponsor Oxford v Cambridge Boat Race
- Flick calm despite Barca's dire Bayern record
- Kenya court hears challenge to deputy leader's impeachment
- Women footballers call on FIFA to drop Saudi Aramco as sponsor
- Mozambican opposition leader says security forces killed his lawyer
- Modi calls for quick end to Ukraine conflict in meeting with Putin
- Stock markets diverge tracking US outlook
- Snyman returns for Springboks' November internationals
- Bangladesh battle at 101-3 as South Africa threaten innings defeat
- Over 250 women in talks with Harrods over Al-Fayed claims
- England pick Ahmed as third spinner for deciding Pakistan Test
- Verreynne century puts South Africa on top, Bangladesh 19-2 at tea
- Navalny's tomb 'covered with fresh flowers every day': widow
- Schauffele targets more success in Japan after major breakthroughs
- Rare Tintin albums go under the hammer in Paris
- Blinken in Israel to push for Gaza truce
- Most markets fall as traders weigh US rates outlook
Windfall tax backlash menaces Spain's green energy sector
Spain's left-wing government has infuriated banking and energy giants by wanting to maintain a windfall tax on them, threatening crucial investments for the European country's green energy transition.
The tax entered force for two years in January 2023 to fund measures aimed at protecting consumer purchasing power as inflation spiked following the outbreak of the war in Ukraine.
But Prime Minister Pedro Sanchez's government intends to keep it as part of a coalition deal with far-left party Sumar, a choice confirmed this month by Economy Minister Carlos Cuerpo.
Several countries have implemented or are considering exceptional levies to rebalance their budgets, including EU heavyweights France and Italy, who are in the commission's firing line for excessive deficits.
Spain is also looking to slash its deficit and the tax, which raked in more than 2.8 billion euros ($3.1 billion) this year according to the budget ministry, could be a useful tool.
Cuerpo has said the tax was effective at redistributing wealth without damaging the competitiveness or solvability of the companies concerned.
Banking giant Santander and energy major Iberdrola are notable examples, with both posting record profits last year.
But the companies say the government has reneged on its word by planning to extend the levy, introduced at a time of runaway inflation and high interest rates they believe is over.
Spanish oil giant Repsol announced this week that it had already frozen investments in its green hydrogen projects in the country, citing an "unfavourable regulatory environment", particularly the windfall tax.
So-called "green" hydrogen, produced using renewable electricity, has been identified as a possible replacement for carbon-spewing fossil fuels like oil, gas and coal.
But the technology is in a relatively early stage of development and requires substantial investment.
- 'Fiscal populism' -
The permanent windfall tax threatens to send "billions" of euros of investment to other countries, Repsol boss Josu Imaz wrote in newspaper La Vanguardia, slamming the government's "fiscal populism".
Foment del Treball, a Catalan business leaders' organisation, warns of repercussions for jobs and investment due to what it believes is a "discriminatory" measure against the energy sector.
The boss of energy giant Endesa, Jose Bogas, also warned Spain would "lose opportunities" by generating doubts about the future of the country's green energy sector, which the government has made a cornerstone of its policy.
Of the 308 billion euros earmarked for the energy transition by 2030, 252 billion is due to come from the private sector.
In June, the International Monetary Fund warned windfall taxes should remain temporary to avoid the risk of putting off already weak investment.
Opponents of the plan hope the minority government's fickle allies in parliament will help scupper it in a vote.
F.Pedersen--AMWN