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EU discussing tax on energy firms' war-linked profits, ministers says - Finance news and analysis from Global Banking & Finance Review
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EU discussing tax on energy firms' war-linked profits, ministers says

Published by Global Banking & Finance Review

Posted on May 13, 2026

1 min read

· Last updated: May 13, 2026

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EU discussing tax on energy firms' war-linked profits, ministers says

EU Ministers Consider Windfall Tax on Energy Companies

(Corrects name of minister to Stavros Papastavrou in first paragraph)

Background on the Proposed Tax

NICOSIA, May 13 (Reuters) - European Union energy ministers are discussing the creation of a tax on energy companies' windfall profits from the price hikes that followed the eruption of the Iran war, Greek Energy Minister Stavros Papastavrou said on Wednesday.

Support Among EU Member States

Spanish Energy Minister Sara Aagesen said five EU countries, including Spain, are in favour of such a tax.

Upcoming Meeting Details

EU energy ministers are set to meet on Thursday in Nicosia.

Reporting and Editorial Credits

(Reporting by Kate Abnett and Inti Landauro; Editing by Andrew Heavens)

Key Takeaways

  • Five EU countries — Germany, Italy, Spain, Portugal and Austria — have formally asked the European Commission to introduce an EU‑wide tax on windfall profits of energy firms arising from the Iran war energy price spike (investing.com).
  • The proposal draws on the precedent of the 2022 EU “solidarity contribution,” a temporary levy on fossil fuel companies, and includes considerations for taxing profits abroad (taxfoundation.org).
  • The European Commission is evaluating these requests and expected to propose a suite of coordinated, temporary and targeted emergency measures—including potential windfall taxes—without raising deficits or inflation (agenceurope.eu)

References

Frequently Asked Questions

What tax are EU energy ministers discussing?
EU energy ministers are considering a tax on energy companies' windfall profits resulting from price hikes after the eruption of the Iran war.
Which EU countries support the tax proposal?
Five EU countries, including Spain, are in favour of the proposed tax on energy firms' war-linked profits.
When and where are EU energy ministers meeting on this issue?
EU energy ministers are scheduled to meet on Thursday in Nicosia to discuss the tax proposal.
Who announced the discussion about the windfall tax?
Greek Energy Minister Nikos Taragas and Spanish Energy Minister Sara Aagesen confirmed the ongoing discussions.

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