Five EU countries call for taxing energy companies' excessive profits.

Against the backdrop of significantly higher energy prices due to the conflict in the Middle East, Germany, Italy, Austria, Spain, and Portugal recently sent a letter to the European Commission, urging the latter to tax profits obtained by energy companies. According to a report from Xinhua News Agency on the 4th, the letter was jointly issued by the finance ministers of the five countries mentioned above, with the aim of urging the European Commission to take related measures as soon as possible. The letter, cited in the report, states that those who benefit from the conflict must contribute to easing the overall social burden. During the 2022 Ukrainian crisis, the European Union taxed excessive profits in the fossil energy sector, such as oil and natural gas, during the energy crisis. The letter points out that, given the current distortion in the energy market and the significant financial pressures facing EU countries, the European Commission should rapidly establish a "solid legal basis" for a tax mechanism at the EU level. The letter proposes that the tax revenue could support temporary relief measures for consumers and help alleviate inflation pressure without further burdening public finances.