Iran war: 5 EU nations urge tax on energy firms’ profits
As fuel prices spike, finance ministers from Germany, Italy, Spain, Portugal and Austria ‘stand united’ and call for action
Five European Union finance ministers are calling for a tax on windfall profits of energy companies in reaction to rising fuel prices due to the Iran war, according to a letter from the ministers to the EU Commission seen by Reuters on Saturday.
The finance ministers of Germany, Italy, Spain, Portugal and Austria made the joint call in a letter dated Friday, saying such a measure would be a signal that “we stand united and are able to take action”.
“It would also send a clear message that those who profit from the consequences of the war must do their part to ease the burden on the general public,” they wrote.
Oil and gas prices have spiked since the US-Israeli strikes on Iran began on February 28, creating a price shock similar to the energy crisis Europe went through after Russia invaded Ukraine in 2022, even though EU countries are now getting more energy from renewable sources.
In the letter, addressed to EU Climate Commissioner Wopke Hoekstra, the ministers pointed to a similar emergency tax in 2022 to address high energy prices.