Overview
- The finance chiefs from Germany, Italy, Spain, Portugal and Austria, in a letter dated Friday, urged the European Commission to design an EU-wide windfall contribution on energy companies.
- They said the levy should help finance temporary relief for households and cool inflation without adding to public budgets, but they did not specify the tax rate or which firms would be covered.
- Oil and gas prices have surged since US-Israeli strikes on Iran began on February 28, with Iran disrupting the Strait of Hormuz, and European gas up more than 70% as diesel in Germany set a new record.
- EU officials have signaled they may revive 2022 emergency tools, which included a 33% solidarity levy on excess oil and gas profits and a cap on gas prices.
- Any EU plan would still require a Commission proposal and backing from a majority of governments, and the ministers also asked Brussels to examine whether profits earned outside the EU can be taxed.