Is Spain Preparing For Its Own Deposit "Levy"?

Tyler Durden's picture

While Spain's economy minister Luis De Guindos proclaimed in the Senate today that bank deposits under EUR100,000 are "sacred"and that "Spanish savers should stay calm," Spain, it would appear, has changed constitutional rules to enable a so-called 'moderate' levy on deposits - as under previous Spanish law this was prohibited. For now, they claim the 'levy' will be "not much higher than 0%" and is mainly aimed at regions in Spain that have "made no effort to collect taxes" based on new revenue expectations. As El Pais reports, the minister of finance and public administration, Cristobal Montoro, defends the need for such a 'levy' in their constitution on the basis of standardizing taxes across regions (and is preparing a proposal on the amounts to be paid) and although it would appear that while the European Commission could previously argue that such a 'tax' would violate the free movement of capital in Europe, it now leaves the door open to eventually effectively taxing the deposits. We can't help but remember the Tequila crisis and the constant reassurances from Zedillo up until even the night before Mexico devalued...

Via El Pais (Via Google Translate),

The Minister of Finance and Public Administration, Cristobal Montoro, has advanced on Tuesday that the government will impose a type "moderate" to bank deposits to compensate communities that saw their tax autonomy canceled after the Executive created a state tax 0% rate.  This tax on bank deposits, which has nothing to do with Cyprus, does not affect savers but requires credit institutions to pay for that capture deposits. 


"The autonomous communities receive timely and therefore financially compensation shall implement a moderate rate in the state tax on bank deposits," said the minister, adding that this kind "will not be much higher than 0%" . 


The Minister of Finance has clarified that such "moderate" will have no tax collection effort, "but that these regions serve to offset the revenue loss to see."  So, he assured that the amount will correspond to the amount "exact has been undermined by the cancellation of regional taxes". 


It will not be the case of Asturias, where the tax on deposits was approved by the regional budget law, while "Spanish law prohibits the adoption of this mode" stressed Montoro.  During the questioning of Senator Francisco Fuentes Socialist Group Gallardo, Montoro explained that communities of Extremadura, Andalusia and the Canary Islands, which were in force when the tax came into effect on state "receive timely compensation, which will resulting from the implementation a moderate to state tax rate. " 


Montoro has stressed that the Central Government is preparing a proposal on the amounts to be paid to travel to the affected communities "in the relevant joint committee" with the affected communities.  "That is the Government's intention and hope that through political dialogue can establish an agreement," said. 


Has advanced further the Government's intention to reduce delays for this compensation count as income to the budget. 


Meanwhile, Sen. Gallardo Fuentes Extremadura has quantified what will stop collecting the three affected regions in 2013, once in force the 0% of the Government, amounting to 230 million euros in 2013.  Specifically, Extremadura lose 39 million euros, 96 million Canary Islands and Andalusia, 95.5 million.  Besides, you corresponerían Asturias 30 million. 


The Government announced in November 2012 the creation of a tax on bank deposits with type 0%, with implementation on 1 January 2013, to prevent the regions implement your own.  A week earlier, the Constitutional Court had endorsed the tax on deposits of Extremadura, which launched in 2001 and turned in the day the government of José María Aznar. 


Thus, this tax was in force before the imposition of the 0% and in the case of Andalusia, the Canary Islands in 2010 and established, who created it in June 2012.  Only after it established Asturias.  So this type Montoro 0% justified by the need to standardize the tax system and maintain the unity of the internal market, after the European Commission will send a letter to the Government on the grounds that these taxes in the regions could violate the free movement of capital.  While leaving the door open to eventually effectively taxing the deposits.

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MarsInScorpio's picture

Actually, the Russian gambit by Cyprus is pure genius.


OK, Europe, here comes the Bear chomping on your southern flank. The dream of the czars to have year-round warm-weather naval ports - and the nightmare of the Western Europeans that this must be contained at all costs - is about to come true. The Russians get their dream - the Western Europeans get their nightmare.


This puts the entire issue into a very different light. It isn't just about the western banksters any more - it is also about European survival. As someone who has had the thrill of watching these types up-close, I can assure you that tonight there are some extremely angry politicians chewing the ass of the central bankers for getting them into this mess.


This event will go down as one of the most idiotic gambits ever played by the banksters. It is the point when they have overplayed their hand - believing their own lies about themselves and their intelligence, they have told - and sold - themselves on the idea that anything they do will work to their advantage. They are - in their own eyes - the most brilliant people ever to walk the Earth.


Let me see if I can give you a bit of an analogy, although the extreme situation of this is not the same in magnitude - but it will give you the idea:


This is like the moment when Germans in WWII realized that their Nazi leaders had totally messed up. It had been a great ride - gigantic demonstrations with thousands of like-minded supporters, bonfires, Jews trotted out as the scapegoats for everything (much as I all too often see on ZH . . . ), then the glorious victories of war - one country after another falling before the Panzers.


It was a great time to be a German. But finally the Nazi leadership took on one country too many - it wasn't just Russia that overtaxed them, there were the Brits, and through manipulation of the neutrality laws, the Americans, who were eating at them from both ends.


The German army stopped, exhausted, unable to go on in the dead of the Russsian winter. Over stretched supply lines, troops physically depleted, the machines of war worn out and unable to function from lack of repair and replacment, the skies filled with Allied bombers raining down tons of incindiary devices to burn their homeland to the ground - yes, the Nazis went too far, with too much belief in their own lies that they were the decendents of a Master Race, ordained by God to rule - or to put it in terms that will strike a recent chord - they were doing God's work.


It all came apart, didn't it? The collapse was brutal and finite.


Now we are witnessing the same occur to the current "Master Race" - the intelligensia of the EU and the Banking Cartel. They have rolled across one nation after another, celebrating thier superior intellect and plans for society. They have raped, and pillaged, and burned everything they could to the ground in their relentless pursuit of self-gratification and greed.


Now it is coming to an end. The supply lines of the ponzi fractional reserve system are stretched too far, the machines of finance are worn out and lack the creation of true wealth to keep them functioning, the army of planners, beaurucrats and politicians are exhausted from too many meetings that resulted in nothing but sleepless nights knowing that it is all a lie, and the inevitable is coming.


Soon there will be a true New World Order. The one envisioned by the Banking Cartel will be replaced by something else - and they will be tried for their crimes against humanity.


It's winter, 1943, and the frozen tundra is just now beginning to extract its price . . .


Looney's picture

. "Actually, the Russian gambit by Cyprus is pure genius..."

Deep Thoughts by… (who-woulda-thonged-it?) Dennis “the Retard” Gartman, "People around the world don't kidnap Russians because they know that the Russians will deal with you in a very efficient and very ugly manner".


Deep Thoughts by Looney…

Dennis, are you suggesting that Mark Madoff hung himself with his left testicle in his mouth because he knew what Nanny-Bloomfart was about to deprive him of?




P.S. If I don’t post here anymore, my ass must’ve been droned… or somepin…  ;-)

El Viejo's picture

I guess the 10yr will go below 1.5 soon?

Supernova Born's picture

"La Mordida" comes to Spain a la the Mexican Police!

Beautiful fiat corruption at its most base-less!

Mentaliusanything's picture

I must have had a few to many ..... I read that as "Bra less" Ive got to stop Z hedge and booze.. they dont mix well

Looney's picture

Yes, the 10yr of Solitary confinement WILL go below 1.5... soon! ;-)


max2205's picture

Open da doors, the people are coming to get their little pieces of paper

Then they will issue new pieces of paper...yikes

TeMpTeK's picture

The Annual Running of the Banks ... Better than bulls....Bitchez......

sunaJ's picture



That's a great analogy, and a realization of self-betrayal that I have consciously tried to avoid in life.  Which means you give up a lot of what you think you know, and you still may be doomed to it. 

Element's picture



bu .. but ... why would they even need a levy? ... it was all going to be fine, ... like ... just last Thursday!


</W T Faaaaarrrrrk?!!>

Almost Solvent's picture

There are a couple NATO bases on Cyprus, no?

Also, some jOO country right off their shores, no?

I'm sure Cyprus will be peacefully turned over to Russia - no war needed.

machineh's picture

some jOO country right off their shores

Right, that's why they're calling this a 'levy'


Banksters's picture

They also try to keep cows calm before slaughter.   


Beppe Grillo is probably laughing his ass off right now.   If Italy has new elections, he'll win hands down.

Thanks to the fuckin eurotards.  I can hardly believe the shit that  comes from these twats.


 EU Said to Discuss Cyprus Capital Controls, Longer Bank Holiday 




toys for tits's picture



Which is why they postponed this shit even though they knew about it since the Greek bondholders - Cyprus banks - got 70% haircuts.


They fucked up so bad, and it couldn't have been over a smaller amount of money - 6B euros.

rotagen's picture

Yeah, well have you seen those fat brain-dead unelected eurocrats that Farage is always yelling at..?.. I guess it's a bit of a shame yelling at people with brain damage.  They look like your typical military idiots, the kind of beef slabs that always end up in the military because they're too dumb to survive elsewhere.

Cdad's picture

it is also about European survival

Excuse me...drinkingwithcdad here...How many more fucking people have to die in order to assure the "survival" of such men as these...these mainland European technocrat idiots and central bankers?  Seriously, how many more need to die on the beaches in France and Italy?  

If the ECB's attempt to steal depositor money from Cyprus, in order to prop up yet another failed bank [pffffffffft], ends with the Russians having a naval port on Europe's Southern shores...perhaps, it is finally time to go ahead and reexamine that whole damn NATO thing, huh?

What's next....what's next....what's next....

disabledvet's picture

"the Germans aren't going to put up with this shit much longer." period. as for "Russians on the island of Cyprus"...hey, spin the wheel and place your bets. Turkey has the other third right now. this REALLY doesn't matter. it REALLY doesn't. car bombings in Iraq, Syria saying the opposition has used chemical weapons, Hezbollah reading to "take Beirut by force." Egypt moving massed armies into the Sinai. a dead American Ambassador and security detail in Libya. Kidnapped French family in Sierra Leone. Shall i continue about "what really matters" here? So again i say "here's the American position":

ebworthen's picture

"It's winter, 1943, and the frozen tundra is just now beginning to extract its price . . ."

Brought forth an image of Wolfgang Schauble scuttling along the ground with some firewood to light under the engine of his Panzer to get the oil viscous enough to start the engine.

Non Passaran's picture

And SS-Oberstrumfuehrer Van Rompuy calmly planning to slaughter the entire nearby village if they don't produce enough speck and potato brandy for his troops by 4pm

sunnydays's picture

The desperation of the bankers is now in full view for the world to see.  They have kicked the ball down as far as they could and have pretended all is well.  Now they have to show the truth.   Just saying these things, people in the countries should be running to their banks as fast as possible, that alone will crash them.   

The stupidity of it all, shows the desperation of them all.   We do now know the SHTF and it is going everywhere. 

chump666's picture

I wouldn't be betting on Russia as any kind of white knight.

The country is a corrupt, crime ridden, inflation behemoth.  Their nightmare is another revolution.

History is repeating.

Pseudo Anonym's picture

that's what makes russia ripe for giving their people some other focus than their own problems

The country is a corrupt, crime ridden, inflation behemoth

chump666's picture

Yes good point.  Much like China and Japan.  Looks like war cycle about to hit

Mentaliusanything's picture

your no Chump666. History never repeats but sure as Hell it rhymes. Its coming just to take your eyes of the theft.The only problem is it is no longer "payable" and so it will be a War of desperation not Victors. When there is nothing to steal humans will eat themselves. I want Ms Lagardes left breast lightly sauted in the juice of Helicopter Bens removed right ball sack. Squid as entree and dessert the dessicated brains of TimothyGiethner ( a small meal indeed)

GOSPLAN HERO's picture

1865 - big federal government won the war.

... ALL states were defeated.

BullsNBeers's picture

With all due respect, you're nuts... at least with half of what you are suggesting. 

Do you doubt for a second that this was not planned? Cyprus? Hell, that could be quietly absorbed and no one would notice.

This is probing to see how people react.

My ex-wife called me at work one day and said I was going to be mad at her for spending what she did on clothes. I asked her how much and she told me $2200.00. I went balistic and was unloading on her over the phone when she told me she was just kidding. She had only spent $1,200.00.

I was relieved to the point that it was not until I got off the phone with her that it occured to me that I had been gamed.

This is what is happening now and they will meter it in the most digestible way possible. It will be cranked down to a lower percentage accross the board and sold by the ECB as "responsible action" by the Cyproits for conceeding.

The Cypriots will breath a sigh that a smaller percentage of their money has been STOLEN, and everyone can relax.

If the Cyproits supplicate, expect this shit everywhere.

MarsInScorpio's picture

Respectfully, as well . . .


I have no trouble whatsoever believing that Cyprus is a test market for theft. I'm sure you remember this, documented in Wikipedia: "peace for our time", spoken on 30 September 1938 by British Prime Minister Neville Chamberlain in his speech concerning the Munich Agreement and the Anglo-German Declaration .  . . It is primarily remembered for its ironic value, as the German occupation of the Sudetenland began on the following day."


So the idea that the Banksters picked a small, weak, nation to test their theory of theft is one of those, "and this is a surprise?" moments. Of course they picked an easy target to set a precedent.


But this time something happened that they didn't expect: After the big nations of Spain, Italy, Greece (relatively speaking compared to Cyprus) folded under their takeover through technocrats imposed by the Banking Cartel, they thought that stealing savings would be so much easier than stealing the political process.


What they didn't figure - because they can't relate to the common people - is that it is one thing to guilt-trip a nation, it is another to take an indivdual's savings whcih that indivdual firmly believes belongs to him or her through their own self-defined "honest" work - they own it with no guilt whatsoever. The psychological paradigm is different - but intellectual elitists of their bent are incapable of understanding that reality.


I firmly believe that the real motivator behind the failure of the parliment to endorse the theft is simply life preservation by the members. There are only 56 of them - and no one would feel bad about someone murdering them where they stood.


It is a lesson that Congress, the WH, FED, DHS, DEA, ATF, FBI, SCOTUS, the state executives and legislatures, and even the local cops themselves, need to absorb. If a person feels you have stolen their life, they will feel a right to take yours as well - with no guilt whatsoever. (Are you listening, Ben?)


Oliver Jones's picture

I would agree with your argument about life preservation, especially given that the citizens of Cyprus are one thing - and the Russian mafia is something else.

In any case, it looks like Russia will get not only a nice military base in the vicinity of Western Europe, but it will also gain control of the massive gas fields off Cyprus - this will give it more leverage over Europe, since the EU simply won't have access to an alternative supply (Russia will have nipped that little problem in the bud by making sure Cyprus is a protectorate. You can be sure that stern words will be had with the Turks about the extraction and sale of gas on their end of the gas field, too.)

e-recep's picture

you should stop seeing banksters as semigods. they have enormous greed and self-adoration and that's their weakness. it blinds them. like everyone else they can fuck up. as i said it's the raw power that says the last word not the usurer. that bulldozer in front of the bank changed a lot of things, believe it or not.

Uber Vandal's picture

It appears that Martin Armstrong shares your view, and feels that this Friday, March 22, is when things will get very, very interesting.

Of note, the following was published on March 13, days before this all went explodey.

In the case of Russia.......... She remains the greatest risk of all for as Europe and America crumble under debt laden economies refusing to mend their ways, the Russian bear merely waits in silence watching for the right moment. She can take an economically weak Europe in less than one week and will do so for she can also turn off Europe’s energy in the blink of an eye. The political winds of change have appeared.

Spigot's picture

We have news hounds sniffing the bushes since the Cyprus Horror was announced and a few of their findings are published: Spain, New Zealand somehow have knowingly changed their laws to enable "wealth levies". German bank ball sack states "Italy is wealthy enough to pay for a wealth tax...", etc.

Something tells me that there's a bit of orchastration going on here...

Anusocracy's picture

Is orchastration like an orchidectomy?

I did give you an upvote.

flapdoodle's picture

Excellent analogy... I just hope its true and the real analogy is Nazi Germany, but my deep fear is that it is more like Imperial Japan in WWII where the fanatic elite were willing to hang on till the last Japanese slave-serf died charging a machine-gun nest, then they would commit ritual seppuku and leave nothing at all behind...

If the Gods smile, the analogy will be more like the fall of Fascist Italy where the partisans rise up and hang the elites from the lamp-posts...

Confundido's picture

You would be right...but there's one piece missing: What makes you think the Russians/Gazprom are not in this together with Goldman? Or do you really think the EU is that stupid to put the entire Euro project at risk, where it not for the fact that there is some sharing to do on the nat gas reserves?

zhandax's picture

Yo Occam, where did you leave that  razor?

bruinjoe93's picture

One of the best comments I've read on any site.


Economics is too complicated for a group of individuals to command.  State sponsored control of the economy will always fail because it is just too complicated with too many variables.  Isaac Newton said that he can calculate the movement of stars but he could not predict the behaviour of man.



Buck Johnson's picture

Bravo, Bravo.  The bankers went one mile to far in their attempts at making their delusions into reality.

e-recep's picture

wow, what a post. you should write more often, mate.

ACP's picture

Come on Spain, now's your chance to be the first DOMINO!

THX 1178's picture

Spain needs an example before they get goin'. Once S. Europe sees its possible to leave... they'll leave in droves. Come on Cyprus! Come on Spain!

Cdad's picture

First domino?  LOL...what...are you rip van fuckin' winkle or something?

ACP's picture

Ah, looks at the dominoes have fallen so far, we ain't seen nuthin' yet!

toys for tits's picture


The markets aren't the leading indicators anymore because they have been manipulated too much by the Fed.  Now remember how far behind the curve the Fed was in 2008.

The Fed should have stepped in here to save this for 6B euros if they wanted to prolong the fantasy.

ShortTheUS's picture

Depositors will be compensated with  shares of Spider-Man towel manufacturers!

Cdad's picture

What's next...what's next...what's next !

Scalaris's picture

I'm detecting a pattern here.