The European Commissioner for the Economy Valdis Dombrovskis has given the green light to the member states of the European Union to introduce a tax on extra-profit energy companies that make a profit due to the sharp rise in fuel prices.
– Nothing prevents members from applying this – said Dombrovskis in front of representatives of the European Parliament, adding that a coordinated approach at the EU level is being considered.
His statements came after Austria, Germany, Italy, Portugal and Spain asked the Commission to ensure a fair distribution of windfall profits arising from the crisis in the Middle East, writes Politico.
Energy prices in Europe rose sharply after Iran closed the Strait of Hormuz, through which a fifth of the world’s oil and gas passes. The EU has already introduced a temporary tax on the extra profits of energy companies in 2022, after the Russian invasion of Ukraine.
The commission is preparing a package of measures to ease the crisis, including tax cuts on electricity compared to fossil fuels and changes to the emissions trading system to prevent a rise in the carbon price.
Dombrovskis rejected proposals to suspend EU fiscal rules by activating the so-called “general exemption clauses”, which were used during the pandemic.
– At the moment, we do not have a scenario of a serious economic decline in the Eurozone or the EU – he emphasized.
Italian Prime Minister Giorgia Meloni said earlier that the possibility of suspending fiscal rules should not be ruled out if the crisis deepens. The commission will include the economic consequences of the war in the Middle East in the next forecast in May, and Dombrovskis warned that EU growth could be reduced by up to 0.6 percent.
(Vijesti.ba / FENA)
