Finance Minister of spain And four other European countries are urging the EU to impose a bloc-wide windfall tax on energy companies, worried about rising oil and gas prices. war in iran Will lead to inflation and put pressure on families.
Spain’s 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 increases.
“The conflict in the Middle East has led to rising oil prices, placing a significant burden on the European economy and European citizens,” said the letter, made public by Curepo in an online post.
“It is important to ensure that this burden is distributed fairly,” it said.
Europe is largely dependent on imported oil and gas, making it vulnerable to external shocks. There will be turmoil in energy markets in 2022 Russia’s full-scale invasion Ukraine pushed inflation into double digits in many European countries.
At that time, the EU imposed a “cohesion contribution” which included limits on excess energy gains.
“Given the existing market distortions and fiscal constraints, the European Commission should rapidly develop a uniform EU-wide contribution instrument,” the letter says. “It will also send a clear message that those who profit from the consequences of war must do their part to reduce the burden on the general public.”
Annual inflation rates rose in the 21 countries that use the euro, driven largely by higher oil prices. 2.5% in MarchFrom 1.9% in February.
Iran has blocked most tanker traffic through the Strait of Hormuz – a chokepoint for about 20% of global oil and gas – a move that threatens to keep fuel markets tense for months.
EU Energy Commissioner Dan Jorgensen warned this week The disruption caused by the shutdown means that fuel prices are “unlikely to return to normal levels in the near future.”
