News
26/09/18
Germany, Spain, Portugal urge EU windfall tax options
Brussels, 18 September (Argus) — The European Commission should present clear
options for an excess profits tax on oil companies, German finance minister Lars
Klingbeil said today, gaining support from some EU counterparts. France,
however, cautioned against a one-size-fits-all approach. Klingbeil and his peers
from Austria, Spain, Portugal, Poland and Italy called on the commission to
outline possible windfall tax models ahead of a 9 October meeting of EU finance
ministers in Luxembourg. "My clear expectation from the commission is to present
models for an excess profit tax now," Klingbeil said at an informal ministerial
meeting in Dublin. "There are also instruments we can use to steer the market.
That includes a fuel price cap, but also the excess profit tax." French finance
minister Roland Lescure said he was not opposed to a windfall tax but said
national circumstances differ. "I'm willing to see what the commission is going
to come up with," he said. "We also want to make sure that we don't put
one-size-fits-all measures in place when national situations are different."
European economy commissioner Valdis Dombrovskis said the commission is not
preparing an EU-wide proposal, and member states remain free to pursue national
windfall tax measures. "There is a possibility, certainly for member states to
proceed with this windfall profit taxation," Dombrovskis said, adding any
measures should be temporary and targeted and should not increase fossil fuel
demand. "When we are facing a supply shock, driving up demand will not help," he
said. Klingbeil said Berlin is discussing reductions in fuel-related taxes, as
flagged by German chancellor Friedrich Merz. "I want a clear, rapid signal at
the gas pumps," Klingbeil said. "We are doing this as the federal government,
but Europe must also contribute now to getting fuel prices down." Spanish
economy minister Carlos Cuerpo also urged the commission to analyse
energy-sector profits. "And if there are windfall profits, then we should go and
tax them," Cuerpo said, arguing for a European approach so the costs are shared
fairly. Portuguese economy minister Joaquim Jose Miranda said the commission has
generally favoured national responses over a European solution. He said
Portugal's automatic fuel tax reduction, introduced after the outbreak of war
between Iran and the US, will remain in place for a "certain period". Austrian
finance minister Markus Marterbauer called on the commission to examine
energy-sector profit margins and earnings, and said he would be open to
reintroducing a domestic cap on fuel margins. "Neither the state nor companies
should profit from the high prices," he said. By Dafydd ab Iago Send comments
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