Euronews is reporting that six European countries are calling for an EU-wide windfall tax on oil and gas companies to capture a portion of the exceptional profits they have made as a result of the surge in energy prices during the war with Iran.
Germany, Italy, Spain, Austria, Poland and Portugal are calling for a European framework to tax the windfall profits of oil companies, arguing that energy companies have benefited disproportionately from the sharp increase in prices and refining margins caused by the disruption to global energy supplies.
The finance ministers of Germany, Italy, Austria, Poland and Portugal, together with Spain’s Economy Minister, addressed a joint letter to Ireland’s Finance Minister, Simon Harris, whose country currently holds the rotating Presidency of the Council of the European Union and called for the issue to be discussed at the upcoming European Council Finance meeting.
The ministers argue that oil companies are recording overall profitability and margins on refined petroleum products that have increased by more than the underlying rise in crude oil prices. They describe the current disruption as one of the largest supply shocks in decades and argue that companies benefiting exceptionally from the crisis should contribute towards relieving the pressure being borne by consumers and public finances. The Minister’s also urged the The European Council to submit the results of the investigation on the refiners’ profits.
Germany is opposing the proposal. The EU Commission is also working on a range of different reforms aimed at addressing high energy prices including by enhancing and improving the connectivity of the European grid.
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