Spain’s Government Fails to Pass Budget, Puts Digital Tax In Jeopardy

Spain’s ruling left-wing coalition government failed to gain cross-party support for its budget, which included a proposal to impose a 3 percent tax on digital companies.

The budget was rejected by 191 votes of the 350-seat chamber after the government refused an ultimatum issued by two small Catalan pro-independence parties, whose support they counted on for passage.

The prime minister may call a snap election but if the left-leaning party loses, this could spell the end of the proposed digital tax.

• Spain would have been among the first EU member states to adopt its own digital tax, even as the ...