European governments are discussing a bloc-wide windfall tax on energy companies as fuel and gas prices reach near-record levels, intensifying political pressure ahead of elections in eight EU countries.
German finance minister Lars Klingbeil urged the European Commission to propose ways to tax the excessive profits of oil companies, citing public discontent and the threat of far-right gains. Fuel prices have surged across Europe, with diesel in Germany reaching a record average of €2.45 a litre and petrol hitting €2.31 a litre.
Across the EU, petrol prices are 24% higher than a year earlier, while diesel is up 38% and jet fuel costs more than 100% more. The EU’s economic commissioner said the commission has no immediate plans for an EU-wide tax but is open to discussion. In France and Italy, where elections are due next year, leaders are taking steps to address rising energy costs, including tax cuts and loan support for affected sectors.
Why it matters
High fuel prices are intensifying political tensions in France and Italy, where voters are increasingly focused on the cost of living.
This section reflects Dumpling editorial interpretation and is provided for context only.
What to watch
The European Commission’s response to calls for a windfall tax and how member states will address rising energy costs ahead of elections.
This section reflects Dumpling editorial interpretation and is provided for context only.