European Commission clarifies windfall tax competence for member states

The European Commission has clarified that the taxation of windfall profits from energy companies is the responsibility of individual member states rather than a centralized EU mandate. This response follows a request from Italy and five other nations—Germany, Austria, Poland, Portugal, and Spain—to include a common European windfall tax on the EU agenda.

A spokesperson for the Commission stated that member states can act based on national legislation to address high fuel costs, provided such measures comply with European law. The Commission noted that countries may already utilize their national fiscal powers to address social equity and energy resilience, as outlined in the AccelerateEU communication. While the Commission will respect national decisions, it will monitor their impact on the single market and provide assistance regarding best practices.