Finance ministers of Spain, Germany, Italy, Portugal, Austria urge EU to impose windfall tax on energy companies amid West Asia war

Brussels, Apr 4 (UNI) The finance ministers of Spain, Germany, Italy, Portugal and Austria have urged the European union to impose a bloc-wide windfall tax on energy companies amid the global surge in oil and gas prices, due to the joint US-Israel war against Iran.
In a letter to the European Commission, the five ministers said the conflict in West Asia is “placing a significant burden on the European economy and on European citizens.”
“It is important to ensure that this burden is distributed fairly,” said the letter, dated Friday and made public by Spain’s Economy Minister, Carlos Cuerpo, on Saturday.
Europe is largely dependent on energy imports for its oil and gas supply, and as such it is extremely susceptible to external shocks in the energy market.
“Given the current market distortions and fiscal constraints, the European Commission should swiftly develop a similar EU-wide contribution instrument,” the letter said.
“It would also send a clear message that those who profit from the consequences of the war must do their part to ease the burden on the general public.”
Since the outbreak of the US-Iran war on February 28, global energy prices have surged, driven primarily by the closure of the Strait of Hormuz and direct attacks on energy infrastructure.
Brent crude prices jumped by as much as 8% on Thursday to $109.74 a barrel, reversing Wednesday’s drop when hopes of a de-escalation in the Iran war pushed the international benchmark below the $100-a-barrel mark at one point.
The cost of oil produced in the US also jumped, with a barrel of West Texas Intermediate – crude that is drilled and processed in the US – rising by 11% to $111.60 a barrel, over the $110 mark for the first time since March 9.
UNI