German, EU finance ministers call for energy windfall tax
dw.com • • world
Key Points:
- Germany's finance minister Lars Klingbeil, along with counterparts from Austria, Italy, Portugal, and Spain, called for an EU-wide windfall tax on energy companies profiting amid the Iran war and resulting fuel price surge.
- The ministers urged EU Climate Commissioner Wopke Hoekstra to implement a tax similar to the 2022 emergency levy introduced during the energy crisis caused by Russia's invasion of Ukraine, aiming to ease public burden and curb inflation.
- Diesel prices in Germany reached record highs, hitting €2.391 per liter, driven by Iran's closure of the Strait of Hormuz in retaliation to US and Israeli strikes, which disrupted global fuel supplies.
- Proposed EU measures could include a windfall profits tax, gas price caps, and demand reduction targets, as the bloc continues to rely heavily on imported fossil fuels despite expanding renewable capacity.
- The energy price surge has become a critical issue for European policymakers, with gas prices rising over 70% since late February, prompting urgent calls for coordinated action to ensure affordable energy.
