Five European Union finance ministers are calling for the creation of a windfall tax on energy company profits in response to rising fuel prices caused by the war with Iran, according to a letter addressed to the European Commission and seen by Reuters. The finance ministers of Portugal, Germany, Italy, Spain, and Austria made this joint appeal in a letter dated Friday, April 3, to European Commissioner for Climate Action Wopke Hoekstra. They argue the measure would signal unity and ensure that those profiting from the consequences of the war contribute to easing the burden on the public. Oil and gas prices have soared since the start of US and Israeli attacks on Iran on February 28, creating a price shock similar to the 2022 energy crisis. The ministers are urging the Commission to develop a similar EU-wide instrument with a solid legal basis, though the letter does not specify the tax rate or the companies to be targeted.
Miranda Sarmento and four other EU ministers call for a windfall tax on energy company profits
Context & Explainers
- Minister of State and Finance (2024–present)
- Party: Social Democratic Party (PSD), Partido Social Democrata
- Background: Economist, university professor (ISEG)
Joaquim Miranda Sarmento is Portugal's Finance Minister in the AD government led by Luís Montenegro. An economist and professor at ISEG (Lisbon School of Economics & Management), he served as PSD parliamentary group leader before joining the government.
As Finance Minister, he oversees the state budget, tax policy, public debt management, and fiscal relations with the EU. His decisions on tax brackets, IRS withholding tables, housing incentives, and public spending directly affect residents' cost of living and investment climate.
The European Commission is the EU’s executive body based in Brussels that proposes legislation, enforces EU rules and manages day‑to‑day EU policies; it is led by a President, currently Ursula von der Leyen. Commission proposals on harmonising business rules or introducing preferences can directly affect trade, regulation and competitiveness for companies and residents across all member states, including Portugal.
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Other news coverage of this topic
- What are good accounts for? • Correio da Manhã
- Once again, the Portuguese government is waiting for Brussels to solve its problems • CNN Portugal
- Tax on extraordinary profits of energy companies "is a good way to fund support packages for families" • CNN Portugal
- Montenegro revives Costa's tax on extraordinary energy profits • ECO
- Portugal requests authorisation from Brussels to create a tax on extraordinary energy profits • Público
- Portugal and four other countries want a tax on energy companies' windfall profits • ECO
- Portugal among five EU countries calling for a windfall tax on energy companies • RTP Notícias
- Portugal and four other countries want a tax on extraordinary energy profits • Correio da Manhã
- 5 countries ask Brussels to tax energy companies benefitting from Iran crisis • POLITICO Europe
- Portugal among five EU countries calling for a windfall tax on energy companies • RTP Notícias
