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.
