Repsol suggests that it will stop its industrial investments in Spain after the pact between PSOE and Sumar to reissue its government coalition

The CEO of Repsol, Josu Jon Imaz, warned this Thursday that the company, “before making any investment decision in Spain”, will analyze whether the conditions are “stable and attractive enough to guarantee the profitability of the projects.” and has assured that if this is not the case, there are “other alternatives.”

In a conference to present the company's results in the third quarter of the year – the oil company has earned 2,785 million euros until September, 14% less compared to the same period in 2022 – the head of the company referred to it this way to the agreement between PSOE and Sumar for a possible coalition government that plans to maintain this year and in 2024 the special tax on energy companies and banking.

Imaz, who presided over the PNV from 2004 to 2008 (a party now immersed in full negotiations for the investiture of Pedro Sánchez as president of the Government) assured that the aforementioned tax, which taxes 1.2% of the turnover of companies with higher incomes, to 1,000 million euros, “is illegal, unconstitutional and discriminatory”, in addition to causing Repsol to be the company in the sector most impacted with some 450 million euros this year.

“It is impacting and punishing in negative terms the energy companies that invest in industrial assets and that create industrial jobs in the country,” he stated. He also stressed that its extension “will further penalize this company, with a clear impact on its investors and in their ability to invest in the energy transition”. For the executive, this tax “does not create even one industrial job in Spain and punishes companies that create industry in Spain.”

Imaz pointed out that Spain is “the main geography” in which his company invests and where he plans to continue investing in industrial assets, but added that for this to remain the case it is necessary “to have a clear, predictable and stable regulatory and fiscal framework.” Otherwise, he commented that there are “other alternatives”, such as Portugal, where it could have international activity in its industrial business.. “We have to protect, above all, our shareholders, our employees,” he stressed.

Calviño: “Businessmen have never done so well”

The first vice president of the Government and acting minister of Economic Affairs and Digital Transformation, Nadia Calviño, had an immediate response for Imaz. “We are seeing that companies publish and announce record profits these days; businessmen have never done as well as with our Government,” said the economic head of the Executive in a television interview. Calviño added that “that is the message we are giving these days and it should also lead to a positive message from the business world, because they have done very well in recent years, even in such a difficult situation.”

The drop in Repsol's profits in the first nine months of the year is framed in a context of lower hydrocarbon prices and refining margins compared to last year, in which they skyrocketed due to the energy crisis after Russia's invasion of Ukraine.. But the vice president recalled that there is “very strong confidence” among international investors in Spain, where the price of electricity “is lower” than in other surrounding countries, which is also allowing it to attract “large investment projects.” “.

Regarding the commitment signed in the government agreement between PSOE and Sumar so that companies pay corporate income tax of a minimum of 15% on “real profits”, Calviño recalled that it is not a Spanish debate, but rather a European and international one, where this pact was reached “to prevent tax havens, investments from moving between different jurisdictions and downward competition” in this tax.

“Unconstitutional and unfair”

With respect to this international regulation, Repsol has warned that it will fight this tax in both Spanish and European Justice, since there is a “quite important difference” between what the European Council defined as a tax, being temporary to respond. to the special market conditions and based on profits, and not on turnover as in Spain.

The company has already filed a contentious-administrative appeal against the special tax in the National Court and went to the European courts, because it considers “that it is also unfair at the European level,” he added. Furthermore, he warned that in the event that the company's appeal is overturned in the National Court, Repsol will go to the Constitutional Court, since it believes that the tax “is unconstitutional and is also breaking European competition.”

Antonio Garamendi, president of the CEOE, also valued Imaz's words and framed them in a context of internationalized economy and business decision. “If there are announcements that what they do is withdraw investment, generate distrust and do not generate peace of mind, things as they are, we are in Europe and any company will feel European and will be able to do what it considers,” he summarized.

The president of the CEOE has pointed out that costs are increasing in an area that the worker does not see because that money is taken by the State and leaves the company without the ability to raise salaries.. He has also assured that without all the taxes and “obstacles” that are currently being put in place, with increases in contributions, salaries would be “much higher.”. “Do not doubt that salaries would be raised because companies want everyone to have a good salary to retain talent,” he added.