The government has definitively changed course in its crusade against the big energy companies. After more than two years of standoff, both the President of the Executive, Pedro Sánchez, and the Minister for Ecological Transition, Teresa Ribera, have backed down and are already preparing to review the controversial income tax on energy companies.
The situation has turned around in just two weeks. After the government agreement between PSOE and Sumar included a sine die extension of the tax on the sector, originally temporary, giants such as Endesa or Repsol lashed out against the decision and threatened to move their investments to countries such as France, in the case of the electricity company, and to paralyze projects, in the case of the oil company.
The fear of a chain reaction in the middle of the investment phase to underpin the renewable transition and meet the green objectives committed to Brussels, has pushed the leader of the PSOE and the head of energy policy to reach out, again, to the sector, and to propose a total review of the tax.