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Spain: EU gives energy tax breaks a pass

By  |  February 24, 2014

The European Commission has reportedly closed its investigation into tax breaks offered to companies given energy tax breaks, allowing firms to avoid potentially billions in fines.

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    Reports say The Commission offered just a brief notice earlier this month announcing its findings that Spain’s tax breaks that lead to artificially low energy costs for companies do “not constitute aid.” The announcement was not partnered with a press release, as is typically done by the Commission.

    The decision ends the seven-year investigation into the matter.

    The probe began in 2005 when Spain offered large and midsize firms artificially low energy taxes; according to reports, those breaks lead to a $5.22 billion deficit in the nation’s energy system.

    That deficit was to be compensated by energy consumers via an electricity surcharge over 14 years.

    Full Content: Wall Street Journal

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