ECB could issue negative opinion on Spanish banks’ tax, De Cos says
By Jesús Aguado and Corina Pons
MADRID (Reuters) -The European Central Financial institution (ECB) may doubtlessly concern a adverse opinion towards a lately proposed tax on banks in Spain although particulars had been nonetheless lacking, Financial institution of Spain Governor Pablo Hernandez de Cos stated on Tuesday.
The Spanish authorities introduced the creation of the tax earlier this month, saying the short-term tax on banks ought to usher in 3 billion euros in 2023-2024 that shall be earmarked to assist Spaniards deal with hovering inflation.
The proposal is anticipated to be launched in parliament this week.
“Typically within the case of different international locations it isn’t straightforward to ascertain a tax that doesn’t find yourself affecting credit score, rates of interest or the resilience of banks, and the opinion of the ECB finally ends up being adverse,” De Cos advised a monetary occasion when requested in regards to the tax in Spain.
“We have no idea the main points. As soon as we all know them the ECB should concern an opinion,” stated de Cos, who can also be a member of the ECB’s governing council.
His remarks – which referred to comparable taxes in international locations akin to Slovenia, Slovakia, Romania, Bulgaria, Poland, Hungary, Slovenia – had been in step with comparable remarks made final week by ECB Vice-President Luis de Guindos.
De Guindos cautioned towards any tax that risked damaging the solvency of the banking sector.
De Cos additionally stated on Tuesday that the central financial institution may in all probability revise sightly downwards Spain’s financial development for 2022 and much more considerably for 2023.
He stated this may additionally apply to the eurozone’s financial development outlook.
The central banker added he didn’t see the Spanish economic system coming into a recession.
On Tuesday, the Spanish authorities raised its inflation forecasts for 2022 and 2023 and lowered its financial development goal for 2023.
(Reporting by Jesús Aguado and Corina Pons; Extra reporting by Emma Pinedo; Enhancing by Sandra Maler)
