The European Commission is reviewing a proposal from Portugal and four other EU countries to introduce a windfall tax on energy companies’ extraordinary profits, amid renewed pressure from rising energy prices.
According to a Commission spokesperson, the request—submitted jointly by Portugal, Germany, Spain, Italy and Austria—is currently under analysis, with a response expected “in due course.”
The proposal was outlined in a letter sent by the five countries’ finance ministers, including Portugal’s Joaquim Miranda Sarmento, and addressed to European Commissioner Wopke Hoekstra. The ministers are calling for an EU-wide mechanism similar to the temporary “solidarity contribution” introduced during the 2022 energy crisis.
While acknowledging the request, the Commission stressed that the current context differs from that of 2022, when the EU imposed a 33% levy on excess profits from fossil fuel companies and capped revenues from low-cost electricity producers. Still, officials noted that lessons from that period remain relevant.
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The five countries argue that a renewed windfall tax could help fund temporary relief measures for consumers and curb inflation without placing additional strain on national budgets. They are urging Brussels to act quickly and establish a legally robust framework at the EU level.
The push comes as global energy markets face renewed volatility. Rising tensions in the Middle East—including military escalation involving United States and Israel against Iran, and the subsequent disruption of the strategic Strait of Hormuz—have driven up oil and commodity prices.
Brussels is now weighing whether coordinated EU action is needed once again to address the economic fallout from the latest energy shock.
