Six EU countries urge bloc-wide windfall tax on energy firms

Six European Union countries are pressing for a bloc-wide windfall tax on oil companies as profits surge amid the Middle East conflict, according to a letter seen by AFP and reported by The Local Italy on Sunday.

The letter, sent to the European Commission, argues that energy firms are reaping extraordinary gains from the war-driven price spike and that a coordinated levy would help fund the bloc's climate transition and shield households from high bills.

The initiative comes as Europe continues to grapple with the economic fallout of the conflict, which has disrupted energy markets and pushed up fuel prices across the continent. The six countries did not name a specific rate or mechanism in the letter, according to the AFP report.

The push revives a debate that divided the EU during the 2022 energy crisis, when a temporary windfall tax on energy companies was introduced but later allowed to lapse. Proponents argue that a permanent, bloc-wide mechanism would prevent national fragmentation and ensure a level playing field, while critics contend it could deter investment in oil and gas production at a time of supply uncertainty.

For Italy, the proposal carries particular weight given the country's heavy reliance on imported energy and its exposure to price swings. Italian households and businesses have faced some of the steepest electricity and gas bills in the eurozone over the past two years, a factor that has kept energy policy at the centre of the government's agenda.

The letter's signatories did not specify whether Italy was among them, and the AFP report did not name the six countries. However, the proposal aligns with positions previously voiced by Italian officials, who have called for stronger EU-level action to curb energy costs and support vulnerable consumers.

The European Commission has not yet responded publicly to the letter. The next steps will depend on whether the initiative gains broader support among the 27 member states, where energy policy remains a sensitive issue given differing national interests in fossil fuel production and renewable investment.

From the Estero desk's vantage point, the development illustrates how the Middle East war is reshaping European economic governance, pushing energy solidarity back to the top of the EU agenda and testing the bloc's ability to act collectively in a crisis.