Germany, Italy, Spain, Portugal, and Austria have jointly appealed to the European Commission with a clear call. They are requesting a European measure aimed at the exceptionally large profits in the energy sector.
The American/Israeli war against Iran has led to tensions in energy markets and a sharp increase in oil and gas prices. These price hikes directly impact the costs for households and businesses within the European Union.
Together; not separately
According to the five countries, it is essential that the European Union responds collectively, rather than each EU country acting individually. They believe that individual national measures are insufficient to absorb the impact of the crisis.
Promotion
A joint approach should ensure that all member states handle the consequences of the price increases in the same way.
Windfall profits
The proposed tax on windfall profits targets the extra earnings energy companies make due to current market conditions. The countries argue that companies benefiting from the crisis must also contribute to mitigating its effects.
The proposal builds on previous European measures. In 2022, the European Union introduced a temporary levy on windfall profits of energy companies as a response to the then sharply increased energy prices following Russia’s invasion of Ukraine. According to the five countries, a similar approach can be applied again.
First step
With their appeal, the countries also want to emphasize that the European Union must be capable of acting quickly and jointly in times of crisis. A joint tax measure should not only provide financial relief but also demonstrate that EU countries cooperate.
The European Commission must now assess whether and how such a measure can be developed. This means the first step lies with Brussels before member states can pronounce themselves on a concrete proposal.