European Ministers Call For Profit Caps On Energy Companies As Iran War Drives Price Surge
finance ministers Spain and four other European countries are calling on the European Union to impose a bloc-wide windfall tax on energy companies; He is worried about the increase in oil and natural gas prices. war in Iran It will increase inflation and put a strain on households.
Spanish Economy Minister Carlos Cuerpo said on Saturday that his counterparts from Germany, Italy, Portugal and Austria had signed a letter to the European Commission, citing “market distortions” caused by the price increase.
“The conflict in the Middle East has caused oil prices to rise, placing a serious burden on the European economy and European citizens,” said the letter dated Friday, made public by Cuerpo in an online post.
“It is important to ensure that this burden is distributed fairly,” he said.
Since Europe is largely dependent on imported oil and natural gas, it remains vulnerable to external shocks. Turmoil in energy markets in 2022 Large-scale invasion of Russia Ukraine’s rise has pushed inflation into double digits in many European countries.
At the time, the EU was imposing a “solidarity contribution” that capped excessive energy profits.
“Given current market distortions and fiscal constraints, the European Commission needs to quickly develop a similar contribution instrument across the EU,” the letter said. “This would also send a clear message that those who benefit from the consequences of war must do their part to ease the burden on the population.”
Annual inflation rates rose in the 21 countries that use the euro, largely driven by higher oil prices. 2.5% in MarchFrom 1.9% in February.
Iran has blocked most tanker traffic in the Strait of Hormuz, the transit point for about 20 percent of global oil and natural gas, a move that will stress fuel markets for months.
European Union Energy Commissioner Dan Jorgensen I warned you this week The disruption caused by the closure means fuel prices are “unlikely to return to normal in the foreseeable future”.
