German Finance Minister Lars Klingbeil, along with counterparts from Spain, Portugal, Austria and Italy, has urged the EU Commission to examine a windfall profits tax on oil companies. The letter cites high fuel prices due to the Iran war. The measure would supplement national initiatives.
Brussels. In a letter obtained by Reuters, the five finance ministers urge the EU Commission to develop an EU-wide levy on excess profits. "Given the current market distortions and fiscal constraints, the European Commission should swiftly develop a similar EU-wide levy instrument based on a solid legal foundation," the letter states.
The demand responds to rising oil prices from the Iran war and the blockade of the Strait of Hormuz, through which one fifth of global oil passes. Oil companies are accused of raising prices quickly while passing on falling market prices more slowly. In Germany, fuel prices have risen more sharply than in neighboring countries.
"It is important to ensure that this burden is fairly distributed," the ministers emphasize regarding windfall profits. An EU solution would signal unity and finance relief for consumers.
The letter intensifies debate within the German federal government. While SPD politicians like Klingbeil support a national tax, Chancellor Friedrich Merz and Economy Minister Katherina Reiche criticize legal issues. France's Finance Minister Roland Lescure also called for a refinery sector probe.
In 2022, the EU introduced a temporary 33 percent levy on excess profits, yielding Germany about two billion euros. Now, including foreign profits should be examined. Greenpeace accuses companies of over 80 million euros daily profits in the war's first three weeks, which firms deny.
