Spain’s First Vice-President and Minister of Economic system, Commerce and Enterprise, Carlos Cuerpo walks forward of a cupboard assembly at Moncloa Palace in Madrid, Spain, on March 31, 2026.
Violeta Santos Moura | Reuters
The finance ministers of Spain and 4 different European international locations are urging the European Union to impose a bloc-wide windfall tax on power firms, involved that surging oil and fuel costs pushed by the battle in Iran will gas inflation and pressure households.
Spanish Economic system Minister Carlos Cuerpo stated Saturday that his counterparts from Germany, Italy, Portugal and Austria had signed a letter to the European Fee citing “market distortions” attributable to the value spike.
“The battle within the Center East has brought on oil costs to rise, inserting a big burden on the European financial system and on European residents,” the letter, dated Friday and made public by Cuerpo in an internet put up, stated.
“It is very important be sure that this burden is distributed pretty,” it added.
Europe is essentially depending on imported oil and fuel, leaving it weak to exterior shocks. In 2022, turmoil in power markets following Russia’s full-scale invasion of Ukraine pushed inflation into double digits in lots of European international locations.
On the time, the EU imposed a “solidarity contribution” that included caps on extra power earnings.
“Given the present market distortions and financial constraints, the European Fee ought to swiftly develop an identical EU-wide contribution instrument,” the letter stated. “It might additionally ship a transparent message that those that revenue from the implications of the battle should do their half to ease the burden on most of the people.”
Pushed largely by increased oil costs, the annual inflation fee within the 21 international locations that use the euro rose to 2.5% in March, from 1.9% in February.
Iran has blocked most tanker site visitors by means of the Strait of Hormuz — a chokepoint for about 20% of world oil and fuel — in a transfer that threatens to emphasize gas markets for months.
European Union Power Commissioner Dan Jorgensen warned this week that disruption attributable to the closure means gas costs are unlikely to “return to regular in a foreseeable future.”
