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Five European Union finance ministers have called for a tax on the windfall profits of energy companies in response to rising fuel prices triggered by the ongoing war with Iran, according to a letter addressed to EU Climate Commissioner Wopke Hoekstra. The joint appeal, dated Friday and reported by Reuters, was signed by the finance ministers of Germany, Italy, Spain, Portugal and Austria.

Coverage Comparison

The call was first reported by Reuters, which said it had seen the letter. Germany's finance minister, Lars Klingbeil, was identified in reporting from Deutsche Welle as having joined several EU counterparts in making the request. RFI and the South China Morning Post also carried the story, each noting the involvement of the same five countries.

The letter comes as diesel prices in Germany have reached record highs. According to the automobile association ADAC, cited by Deutsche Welle, the daily average price for a liter of diesel hit €2.391 ($10.45 per gallon) on Friday, surpassing the previous record set just a day earlier.

European gas prices have risen more than 70 percent since the US-Israeli strikes on Iran began on 28 February, according to RFI. This price shock has been compared to the energy crisis that followed Russia's invasion of Ukraine in 2022.

Key Claims

  • Five EU finance ministers — from Germany, Italy, Spain, Portugal and Austria — signed a letter to EU Climate Commissioner Wopke Hoekstra calling for a windfall tax on energy companies, as reported by Reuters, RFI, and the South China Morning Post.
  • The ministers wrote that such a tax would "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," and would signal that "we stand united and are able to take action."
  • They referenced the 2022 emergency tax on energy companies' windfall profits, which was introduced during the energy crisis following Russia's invasion of Ukraine.
  • The letter said the European Commission should "swiftly develop a similar EU-wide contribution instrument grounded on a solid legal basis," citing "current market distortions and fiscal constraints."
  • Oil and gas prices have spiked since the US-Israeli strikes on Iran began on 28 February, with European gas prices rising more than 70 percent, according to reports from RFI and the South China Morning Post.
  • Diesel prices in Germany have reached record highs, according to ADAC data cited by Deutsche Welle.
  • The EU is reportedly considering reviving energy crisis measures from 2022, including proposals to curb grid tariffs and taxes on electricity, as stated by the bloc's energy chief earlier this week.

Perspectives

The five ministers argue that the windfall tax is necessary to ease the financial strain on consumers and curb inflation without adding to public deficits. They emphasize that companies profiting from the war's consequences should contribute to relief efforts. The proposal is framed as a return to a mechanism used successfully during the 2022 energy crisis, which was widely seen as a way to redistribute excess profits during market turmoil.

The letter does not specify the rate of the proposed tax or which companies would be affected, leaving room for debate among EU member states. The European Commission has yet to respond publicly, though the bloc's energy chief has signaled openness to revisiting emergency measures. The outcome may hinge on legal feasibility and political consensus within the EU, as well as the trajectory of the conflict in Iran and its impact on energy markets.