Five EU finance ministers propose windfall tax on energy companies

On April 4, 2026, the finance ministers of Germany, Italy, Spain, Portugal, and Austria sent a joint letter to the European Commission. They are requesting the implementation of an EU-wide windfall tax on energy companies to address rising fuel prices. This surge in energy costs is linked to the conflict in Iran, which began with US-Israeli strikes on February 28, 2026. The ministers addressed their proposal to EU Climate Commissioner Wopke Hoekstra. They suggest that such a tax would fund relief measures for households and curb inflation without burdening public budgets. The ministers argued that this measure would demonstrate European unity and collective action. They also emphasized that entities profiting from war-related market distortions should contribute to public relief efforts. The proposal calls for a mechanism similar to the emergency tax implemented in 2022.