Federal Minister of Finance Lars Klingbeil (SPD) and his counterparts from four other EU countries are striving for this the high fuel prices an excess profits tax at EU level. According to the Reuters news agency, in a letter to the EU Commission they call on the Brussels authority to examine such a measure – and therefore refer to a similar step in the 2022 energy crisis.
“Given the current market distortions and fiscal constraints, the European Commission should quickly develop a similar EU-wide tax instrument based on a solid legal basis,” says the letter, which was signed by Klingbeil and the finance ministers of Spain, Portugal, Austria and Italy.
The ministers justify their demand by saying that the high Oil prices have become a significant burden for the economy and consumers as a result of the Iran war. This primarily refers to the prices for petrol and diesel. “It is important to ensure that this burden is distributed fairly,” wrote the finance ministers, criticizing the profits of energy companies.
Diesel price at new high before Easter
In Germany, fuels have become about a third more expensive since the war began at the end of February, and the price increase continued in the days before Easter. On Maundy Thursday, the diesel price reached a new peak with a daily average of 2.346 euros per liter. One decided by the federal government in March and which came into force on April 1st Limit on price increaseswhich prohibits gas stations from increasing prices more often than once a day, has not brought the hoped-for relief.
The ADAC, among others, criticized the measure as having “promoted rather than limited price developments”. The Federal Association of Consumer Organizations also referred to Austria, where such a limit had previously been enforced and only resulted in a short-term price reduction.
Accordingly, there are calls for further political decisions that should relieve the burden on consumers, such as the excess profits tax called for by Klingbeil. In the past few days, about the Greens as well as the economist Veronika Grimm The so-called Council of Economic Wise Men set a speed limit on motorways in order to reduce demand for fuel.
Rich rejects speed limits, Iran war weighs on economy
Grimm, however, rejected an excess profits tax, as well as fuel discounts and price caps, because this would distort prices. Federal Economics Minister Katherina Reiche (CDU) meanwhile rejected calls for speed limits or car-free Sundays. The price of fuel is “not determined on the German highway, but on the world market,” said Reiche der Augsburg General. The minister therefore believes it is possible to temporarily increase the commuter allowance in order to “specifically” relieve the burden on people “who rely on the car”.
The Iran war is also causing economic difficulties beyond fuel prices and thus underpins the federal government’s goal of achieving economic growth of close to two percent after several years of stagnation. The leading economic research institutes are now only expecting growth of 0.6 percent this year – less than half as much as before the start of the war.
Follow all current developments in the Iran War in our live blog.