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2026-04-05 14:00:07
[Five EU Countries Call for Windfall Profits Tax on Energy; European Gas Prices Have Surged Over 70% Since the Conflict] ⑴ On March 4th, local time, the finance ministers of Germany, Italy, Spain, Portugal, and Austria sent a letter to the European Commission, calling for a windfall profits tax on energy companies due to rising oil prices caused by the situation in Iran. ⑵ The finance ministers stated that the tax could provide financial support for temporary consumer relief measures, reflecting that European governments are trying to find a channel for fiscal redistribution between the excessive profits of energy companies and the pressure on residents. ⑶ According to reports, Europe is highly dependent on imported fuels. Since the outbreak of the conflict between the US, Israel, and Iran on February 28th, European natural gas prices have risen by over 70%, a figure far exceeding the rise in oil prices during the same period, highlighting Europe's vulnerability to gaseous energy. ⑷ The 70% surge in natural gas prices, coupled with the joint call from the five countries for a windfall profits tax, signifies that the response to the European energy crisis has shifted from "whether to intervene" to "how to intervene," with regional coordinated action emerging at the policy level. (5) If the windfall profits tax proposal is adopted by the European Commission, it could have a structural impact on the profit expectations of European energy companies, and also provide a policy reference for other regions facing similar energy shocks.
