Five European Union member states are urging Brussels to impose an emergency windfall tax on energy companies as fuel prices surge following the outbreak of conflict between the US-Israel alliance and Iran.
Finance ministers from Germany, Italy, Spain, Portugal and Austria sent a joint letter to the EU Commission on Friday, 4 April 2026, calling for immediate action to address the energy crisis triggered by military strikes that began on 28 February 2026.
The proposed tax would generate funds to provide temporary relief for consumers grappling with soaring energy costs, while avoiding further strain on already stretched public budgets, according to the letter obtained by Reuters.
European gas prices have surged more than 70% since the conflict erupted in late February, creating an energy shock reminiscent of the 2022 crisis when Russia invaded Ukraine. However, the EU’s increased reliance on renewable energy sources have provided some buffer this time around.
The finance ministers referenced a similar windfall tax implemented in 2022 during the previous energy crisis. That emergency package included a cap on gas prices, taxes on excess energy profits, and mandatory targets to reduce gas consumption.
In their letter to EU Climate Commissioner Wopke Hoekstra, the ministers urged the Commission to quickly develop a comparable EU-wide contribution instrument with strong legal foundations.
An EU Commission spokesperson confirmed receipt of the letter and said the body is working closely with member states on targeted policy responses to the current crisis.
The proposal has already drawn criticism from industry groups. The German Fuel and Energy Association rejected claims of unjustified profiteering, stating its focus remains on maintaining fuel supplies under increasingly challenging circumstances.
