Oil

EU Commission: Taxation of windfall profits falls within the remit of Member States

This is according to a spokesperson for the European Commission

22 August 2026aggiornato il 24 agosto 2026

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Translated by AI

Versione italiana

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Six EU countries call for a tax on oil companies’ windfall profits: Italia among them

2' min read

Translated by AI

Versione italiana

“The taxation of windfall profits falls within the remit of the Member States, which may act in accordance with national legislation.” This was stated by a spokesperson for the European Commission when asked whether the Commission might put forward proposals to this effect, particularly following the letter sent by certain Member States to the Presidency of the Council of the EU. “Member States can already make use of their national tax powers to address the costs in terms of social equity and to devise measures such as the taxation of windfall profits, if they so wish, as set out in the AccelerateEU communication of 22 April.”

Six EU countries call for a tax on oil companies’ windfall profits: Italia among them

Six European Union countries – including Italia – are calling for an EU-wide tax on windfall profits for oil companies, whose profits have soared as a result of the war in the Middle East, according to a letter seen by AFP on Saturday.

The finance ministers of Germany, Italia, Austria, Poland and Portugal, together with the Spanish economy minister, are reported to have sent a joint letter to the Irish finance minister, whose country currently holds the rotating presidency of the EU.

According to reports, the initiative was launched by the German Finance Minister, Lars Klingbeil, and the ministers have called for the issue of a tax to be included on the agenda of a meeting of the bloc’s finance ministers in Dublin next month.

“Oil companies are enjoying overall profitability and margins on refined products that exceed the rise in crude oil prices,” the letter states. “We are experiencing one of the biggest supply shocks of recent decades, and discontent over the rising cost of living is growing worldwide.”

The previous one

The ministers called for discussions on a “Europe-wide framework for taxing windfall profits”, taking into account the lessons learnt from the introduction of a similar measure in 2022, following Russia’s invasion of Ukraine. German Minister Klingbeil has repeatedly stressed that energy companies must not “exploit” consumers during the current crisis, a source at the ministry told AFP. “Excess profits resulting from the crisis must be returned to consumers,” the source said.

Several countries had already called for a tax on oil companies’ profits earlier this year. Energy companies have seen their profits soar since the United States and Israel launched the war against Iran in February, resulting in restrictions on traffic through the vital transit route of the Strait of Hormuz. So far, however, the EU has shown no intention of imposing a tax on oil companies. There are also divisions within the German government on the issue: whilst Klingbeil, of the centre-left SPD – the junior partner in the governing coalition – is in favour of a tax, Chancellor Friedrich Merz’s centre-right CDU is opposed to it.

Montaruli (Fdl): ‘EU tax on oil companies is a good move; Italia is at the forefront’

“The call by European countries, including Italy, for an EU-wide tax on windfall profits to enable us to curb petrol prices is a positive step. The Meloni government is at the forefront of supporting Italians on this front too, and is doing so by every means necessary. Now Europe must listen to us.” So said Augusta Montaruli, deputy leader of the Fratelli d’Italia group in the Chamber of Deputies, in a statement.

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