( CNN ) -- High tax is hurting European competitiveness in the energy sector , according to Iberdrola chief executive Ignacio Galan . Galan , boss of Spain 's largest energy company , said European governments are over-taxing the industry because they believe utility businesses are `` too rich . '' Galan added the industry : `` Is not as competitive as the American one ... we are paying approximately 50 % taxes when the American system is 10 % . '' Spain -- where Iberdrola is headquartered -- is the eurozone 's fourth-largest economy with unemployment at 26.1 % , second only to Greece in the single currency bloc , according to Eurostat data . Iberdrola combats some of that slump , Galan told CNN . the sector employs `` 750,000 people directly so we can already help the governments to create wealth and to create jobs . '' But in 2012 , the company was hit by a 36 % fall in earnings within Spain , despite investing 20 billion euros [ $ 27 billion ] into the country since 2001 . And Galan stresses that European governments , not just Spain , should consider the impact of taxes on corporate cash flows and reinvestment . `` If they are already taking money in cash flows , in taxes , then this money can not flow into investment . '' Based in the Basque city of Bilbao , Iberdrola is also the world 's largest producer of wind energy . Galan told CNN that today , less than 40 % of the Iberdrola 's business is dependent on the eurozone as the company diversifies its risk in other countries including the UK , U.S. , Mexico and Brazil . He added that the taxes imposed by European Union governments are not making reinvestment in Europe an attractive option . `` If we are not generating enough cash flows , then we are not going to invest in those areas , '' he said .
Based in Spain , Iberdrola is also the world 's largest producer of wind energy . American reported a 10 % fall in net profits in Spain for 2001 despite heavy investment . Spain -- where Iberdrola is headquartered -- is the eurozone 's second -largest economy .