Spain's coalition government is struggling to advance its tax reform, a commitment made to the European Commission. The government's annual progress report to Brussels reiterates the goal of reducing tax benefits, such as those enjoyed by diesel fuel.
This aims to increase public revenue by approximately 1.5 billion euros, representing 0.1% of the GDP. However, parliamentary weakness poses a significant challenge to achieving this goal.
The rejection of the energy tax by PNV, Junts, PP, and Vox, coupled with differing positions among coalition partners, complicates the situation. These challenges threaten the disbursement of funds from the Recovery Plan.