Finance ministers of 5 European countries demand limiting the profits of energy companies to contain rising prices

The finance ministers of five European Union countries called for imposing ceilings on the profits of energy companies, in light of the sharp rise in oil and gas prices as a result of the war in Iran, and the accompanying growing concerns about inflation and the increasing burdens on European families.

Spanish Economy Minister Carlos Cuerpo said that his counterparts from Germany, Italy, Portugal and Austria signed a joint letter addressed to the European Commission, in which they pointed to market imbalances resulting from the large jump in energy prices.

The letter stressed that the rise in oil prices constitutes a major burden on the European economy and citizens, stressing the need to distribute this burden fairly.

In 2022, the European Union imposed a solidarity contribution that included restrictions on the surplus profits of energy companies, following the turmoil in the markets after the war in Ukraine.

The ministers called for the development of a similar tool at the European Union level as soon as possible, stressing that this would send a clear message that those who make profits from the repercussions of wars must contribute to alleviating the burden on citizens.

According to recent data, the annual inflation rate in euro zone countries rose to 2.5% in March, compared to 1.9% in February, mainly driven by higher oil prices.

On the other hand, the steps taken by Iran to close most oil tanker traffic through the Strait of Hormuz, through which about 20% of global oil and gas supplies pass, have increased pressure on energy markets, amid expectations that the unrest will continue for several months.