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The European Commissioner for Competition, Joaquín Almunia, announced on July 17, that tax incentives granted to the Spanish shipbuilding sector between 2007 and 2011 will have to be paid back, reports El Correo.
The Spanish government scheme, which had been in operation since 2002, enabled groups of investors buying new ships to take advantage of a reduction in corporate tax, which Commissioner Almunia described as incompatible with EU trading norms.
The daily points out that as it stands, the European Commission has left the calculation of the sum to be repaid to the Spanish government. For El Correo, a "benevolent interpretation" of the decision could reduce the amount initially estimated at €2.7bn to €400m, depending on the list of investors who are called on to provide reimbursement.
Representatives of the shipbuilding industry have already warned that the Brussels decision could endanger 87,000 jobs in the sector, reports El Correo, which adds that —
Pressure succeeded in watering down the initial proposal (...) made by Joaquin Almunia, who was demanding the reimbursement of incentives dating back to 2005, but the deal is a far cry from the one hoped for by Spain.
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