Brussels warns that the Budgets run the risk of breaking the European tax rules

Brussels warns that the Budgets run the risk of breaking the European tax rules


The European Commission has warned on Monday that the General State Budget (PGE) of 2019, like the draft that evaluated in November, runs the risk of breaking the European tax rules, although it has pointed out that it will not carry out a new analysis in depth of the accounts because does not contain "significant differences" with respect to the preliminary document that the Government sent in October 2018.

In a letter, the vice-president of the European Executive for the Euro, Valdis Dombrovskis, and the Commissioner of Economic and Monetary Affairs, Pierre Moscovici, they address the Finance Ministers, María Jesús Montero, and Economy, Nadia Calviño, to emphasize that the PGE, apart from revise GDP growth downwards and "some additional income that is expected to be collected", does not present "significant differences" with respect to the draft that the European authorities evaluated in November.

"This also means that the conclusions of the European Commission on the budget draft adopted on November 21, including the analysis that there are risks in complying with the fiscal adjustment and the provisions of the Stability and Growth Pact, are still widely applied" , they emphasize both.

Dombrovskis and Moscovici celebrate the fact that the State's General Budgets include a deficit target of 1.3% of GDP for this year, compared to the 1.8% that was included in the previous draft.

In addition, he points out that the tax on digital giants that the Government wants to implement in Spain "is in line" with the proposals of Brussels to impose the tax at European level, although "with some nuances related to its design and doubts about its capacity to collection".

With regard to the tax on financial transactions, the letter notes that the Spanish proposal is different "in some important aspects" compared to the approach of the Community Executive, that has "much greater scope". However, he affirms that "in the light of the less ambitious proposals" that are being discussed by European countries that want to implement this tax at a European level, the final design may be "more" similar to the Spanish approach.

Finally, the European Commission takes the opportunity to ask the Government to transpose "as a matter of urgency" a series of European directives that have not yet been brought into national legislation, although it welcomes the progress made in recent months, especially with the Full adoption of MiFID II.


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