350.org lauded the initiative of economy and finance ministers from Italy, Germany, Spain, Portugal and Austria urging the European Union (EU) to revive windfall taxes on oil and gas companies profiting from the West Asia conflict.
Campaigners at 350.org pointed out, however, that other EU nations must immediately step up to support the measure as the conflict escalates and energy bills continue to rise.
Since the beginning of the conflict, gas prices in the EU have risen by 50% and oil prices by 27%. The first 10 days of the conflict alone have cost European taxpayers an additional €3 billion in fossil fuel imports. [1] Analysis by 350.org reveals that global oil and gas price spikes have cost consumers and businesses up to $111 billion in the first month of the Iran war.
Fanny Petitbon, 350.org France Country Manager said:
“The push for an EU-wide windfall tax by five European finance ministers is a bold start but it’s currently a race against time. The momentum must not stall – we need speed and scale. It’s time for the rest of Europe to demonstrate leadership, especially France, whose support remains a vital missing piece of the puzzle.”
350.org welcomed the finance ministers’ proposal to expand and strengthen the windfall tax measure to encompass the entire EU and include profits made by multinational firms abroad.
Following the Ukraine war price spikes in 2022, the EU’s “solidarity contribution” taxed roughly €28 billion on excess fossil fuel profits. 350.org said that such revenues should be used to finance consumer relief through measures such as targeted bill support and direct cash transfers, as well as accelerate the deployment of renewables as both an immediate and long-term solution to the crisis.
“Later this month, fossil fuel giants including TotalEnergies are expected to announce massive first quarter profits: this is money effectively siphoned from the pockets of ordinary people. The EU must not let this great highway robbery play out. Governments must act now – or risk the fallout of an even deeper crisis,” Petitbon said.
Notes:
[1] Speech by President von der Leyen at the European Parliament
Media Contact:
Ilang-Ilang Quijano, 350.org Media Campaigner, [email protected], +639175810934
Kim Bryan, 350.org Media Strategy and Relations Manager, [email protected], +447770881503