The Advocate General at the European Court of Justice (ECJ), Julian Kokott, said that the tax regime in Euskadi, one of the territories that makes up the Basque Country, meets all requirements for fiscal autonomy, largely thanks to its far-reaching economic agreement with the Spanish state.

Although the Advocate General’s opinion is not binding and does not necessarily reflect the ECJ’s final ruling, it is highly influential, prompting several Basque businessmen to express their confidence that the ECJ would reach the same conclusion as Kokott.

Garacites two Basque deputies, José Luis Bilbao and Markel Olano, who believe Kokott’s comments mark “a first step towards European reinforcement of the Basque tax system.”

The case dates back to 2006, when the Euskadi High Court of Justice asked the ECJ to pass sentence on the tax competences of the autonomous Euskadi community. The Advocate General not only said Euskadi has a right to fiscal autonomy, but also that the Basque Justice should be able to decide whether tax benefits for certain businesses are legal, newspaper Avui reports.

Photo: European Court of Justice.

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