With winter approaching and energy costs flaring again, the commission told finance ministers it will analyze how a region-wide windfall levy on energy firms might work and what it would mean for households. The move follows requests from several capitals, including Berlin, to study the option. Hoekstra cautioned that the path is complicated, telling reporters on arrival Friday, "You always need to look at the full solution space." He added, "It is not without complications," noting that a number of member states are against a bloc-wide tax.
Earlier this year, Germany, Portugal, Spain, Austria, Italy and Poland co-signed a letter urging the EU to propose a windfall levy to ease the surge in prices. German Finance Minister Lars Klingbeil said on Thursday that France wasn't opposed. "We can see how refineries and oil companies are profiting from this crisis, while consumers are ultimately the ones bearing the burden," Klingbeil said, adding, "I have a clear expectation that the commission will now put proposals on the table."
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During the post-invasion energy crunch, the EU capped revenues for inframarginal electricity producers such as wind and solar. That policy brought in far less than the anticipated €50 billion ($56 billion) and led to court challenges the EU is still managing, Hoekstra said. The commission has also made clear that countries can choose to set windfall profit caps nationally if they prefer not to wait on a unified approach.
Expect debate to be lively both among governments and inside the commission itself. Speaking in Copenhagen, EU energy chief Dan Jorgensen said in an interview with Bloomberg that he does not support a bloc-wide plan, adding, "stand ready to help develop models and look at best practices, but it is something that member states need to decide for themselves." Meanwhile, the war in Iran has disrupted oil and gas shipments through the Strait of Hormuz, pushing up prices for products like diesel and intensifying the pressure on governments across the 27-country bloc to shield consumers and businesses even as budgets are tight. Energy costs are set to be a priority when EU leaders meet in Brussels next week, and any mix of national measures or a potential EU-wide plan could ripple through utility bills and fuel costs where you live.
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