Six EU Countries Demand Tax on Oil Companies' Excess Profits

Six member states of the European Union are calling for a pan-European tax on the excess profits of oil companies due to their sharp enrichment amid military actions in the Middle East. The finance ministers of Germany, Italy, Austria, Poland, and Portugal, along with the Spanish economy minister, have approached the Irish finance minister to include the issue of a special tax on the agenda of the September meeting of finance ministers in Dublin. The authors of the appeal noted that the margins and profitability of oil companies significantly exceed the rise in oil prices. The military actions of the US and Israel against Iran have disrupted shipping in the Strait of Hormuz, leading to a severe fuel shortage. Energy companies are reaping record profits amid a global cost-of-living crisis. The signatories propose to draw on the experience of the temporary excess profits tax introduced in the EU in 2022 following Russia's invasion of Ukraine. German Finance Minister Lars Klingbeil stated that energy corporations should not profit from consumers during a crisis. Within the EU, debates continue over this initiative: the Social Democrats in Germany support the levy, while the CDU bloc opposes it.

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