German Finance Minister calls for oil company windfall tax

Germany's Finance Minister Lars Klingbeil is launching a new initiative at EU level in response to high fuel prices.

In a letter published on Saturday, Klingbeil and five of his European counterparts call for a windfall tax to be levied on oil companies on the sharp rise in their profits resulting from the war in Iran.

"We are experiencing one of the biggest supply shocks in decades, and discontent over the rising cost of living is growing all over the world," states the letter, which is addressed to Ireland's Finance Minister. Ireland currently holds the EU Council Presidency.

Government measures taken so far have not been sufficient to permanently lower or stabilize prices for businesses and citizens, write the EU ministers from Portugal, Spain, Austria, Italy, Poland and Germany in the letter, a copy of which was seen by dpa.

"That is why we need a joint approach that ensures those who are profiting from the crisis play their part in reducing the burden on the general public."

The ministers stress the importance of tackling the issue of high energy prices "by discussing an EU-wide framework for taxing windfall profits."

In doing so, they say, lessons should be learnt on how to target the profits of oil companies more effectively. 

The letter, which the news magazine Der Spiegel reported, was initiated by Klingbeil, and asks for the issue of an excess profits tax to be placed on the agenda at a meeting of EU economic and finance ministers in Dublin in mid-September.