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The proposed measures include a cap on electricity generators’ profits, which is expected to raise €140 billion to “cushion” the effects on consumers of high prices, energy rationing, temporary state aid and decoupling of gas prices. and electricity, said Ursula in her annual State of the European Union address.
“Don’t get me wrong. In our social market economy, profits are good, but in these times, it is wrong to receive record extraordinary income and profits benefiting from the war and on the backs of our consumers, [so] in these times, profits must be shared and channeled for those who need it most,” declared von der Leyen.
The idea of this tax on extraordinary profits would be to force “electricity producers from fossil fuels to make a contribution to the crisis”, making this tax obtain funds for social support, explained Ursula von der Leyen.
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