EU's tax on C02 emissions could suffocate Spain

The EU is taking advantage of the crisis and budget problems experienced by several of its member states in order to levy a tax on carbon dioxide emissions starting in January 2013.

As the EU revises its Energy Tax, it is not masking its intentions of combining environmental and economic goals and is suggesting that member states use revenues collected from taxes on earned income and capital to support environmental measures. The suggestion could be more fiction than fact.

The new tax has a nationalistic character and establishes minimum tax rates for each EU state to rise. True, current taxes levied on hydrocarbons and combustible fuels encourage the use of coal and penalize renewable energies. And according to the industries, either there is a double tax or none at all. But resistance from several member states is due to the fact that costs could rise and competition could wane.

With this measure, the EU is suggesting a solution that is in reality creating a new problem by causing a significant increase to taxes on diesel. If ultimately the revision is approved as it currently stands, the minimum tax rate on diesel would be greater than gasoline. Right now the opposite is true.

As if this were not enough, the Social and Economic Committee of the EU recommends doing away with a special low tax rate that five member states offer on industrial diesel use. This cut would affect trucks, buses and taxis. The implementation of this measure could cause a serious problem for Spain. Its impact on business and consumption will crush any increased revenues in the fuel sector. Ironically, the EU's help could suffocate us.