Germany’s finance minister, Lars Klingbeil, joined several EU counterparts in calling for an emergency windfall tax on energy companies after recent disruptions tied to tensions with Iran. Ministers from Germany, Austria, Italy, Portugal and Spain sent a joint letter to EU Climate Commissioner Wopke Hoekstra urging quick EU-wide action.
Their appeal follows a spike in fuel prices after Iran closed the Strait of Hormuz amid retaliatory strikes linked to the conflict. In Germany, diesel hit record levels as Easter weekend began: the daily average reached €2.391 per liter on Friday, up from €2.346 on Thursday, according to ADAC.
In the letter, the finance ministers argued that an EU-wide windfall 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.” They said such a measure would demonstrate unity and enable financing of temporary relief—particularly for households—while helping to restrain inflation without further increasing public deficits.
The ministers referenced emergency steps taken during the 2022 energy crisis after Russia’s invasion of Ukraine, when measures combined a windfall profits tax with a gas price cap and demand-reduction targets. They asked the European Commission to develop a comparable contribution mechanism now, based on a solid legal footing.
EU Energy Commissioner Dan Jørgensen has said the bloc is considering similar measures again. Despite major growth in renewables, the EU remains reliant on imported fossil fuels; increased imports from Gulf suppliers have only partially offset reduced Russian supplies, and prices are rising even in countries less exposed to shipments through the Strait of Hormuz. Since late February, some measures show European gas prices up by more than 70%, making affordable energy a top priority for policymakers.