The political debate about superprofits is spreading in several countries in Europe. Germany wants the exceptional profits made by some energy companies thanks to soaring market prices to be used to relieve household bills, Chancellor Olaf Scholz said on Sunday 4 September.
In the document presenting a new massive aid plan against inflation, the German government makes it known that it will plead for a measure “partial withdrawal of random profits” of these companies is implemented within the framework of the European Union, but is ready to act at national level. “Producers simply take advantage of the very high gas prices that determine the price of electricity”lamented the Chancellor at a press conference.
“Controversial Idea”
The reform desired by Berlin, however, differs from the taxation of exceptional profits made by energy groups, decided by certain governments in Europe, underlined the Minister of Finance, Christian Lindner. The government discussed this “controversial idea” but “there are constitutional reservations about this”, added the leader of the liberals, strongly opposed to the principle of a tax. He explained on Sunday that it was not “not a source of income that can be planned and that allows you to organize a quick relief” household bill.
If the word tax is not used, it should indeed be a compulsory contribution imposed on companies in the energy sector intended to reduce the price of electricity paid by households and companies. This compulsory contribution could yield “several tens of billions of euros”said the Minister of Finance.
The contribution “does not come under taxation”, according to Bercy
The French economy ministry estimated on Sunday that the ” contribution “ energy companies that Germany has promised to support at European level was not ” absolutely not “ a tax, in a message sent to journalists. “Germany is introducing a mandatory contribution from companies that benefit from the price of gas while producing electricity from coal, nuclear or renewable energies”we say in Paris.
“This is exactly what France is doing with renewable energies or in another way with [l’énergéticien] EDF by increasing the volume of Arenh [accès régulé à l’électricité nucléaire historique] »Judge Bercy. “The mechanisms are not necessarily the same, but the logic is. (…) and it has nothing to do with taxation.tried to argue the ministry, while calls to tax the exceptional profits of large companies like TotalEnergies or CMA-CGM have multiplied since this summer in France.
Coming from the left, the idea of taxing the superprofits of multinationals is firmly opposed by the Minister of the Economy, Bruno Le Maire, while the Prime Minister, Elisabeth Borne, does not “don’t close the door” last resort.
Diversification of sources of supply
The reaction of Bercy comes a few hours after the presentation by Germany of a plan of 65 billion euros intended to mitigate the effects of inflation. In fact, price increases in Germany reached 7.9% over one year in August.
Germany is faced, like all EU countries, with soaring electricity prices and fears for its energy supply due to the drying up of Russian gas, on which its industry is particularly dependent. Despite the prolonged shutdown of the Nord Stream gas pipeline linking Russia to northern Germany, the country “will be able to face this winter”assured Chancellor Scholz.
“Russia is no longer a reliable energy supplier (…). The federal government has been preparing for this eventuality since the beginning of the year.specified the leader, emphasizing that thanks to the diversification of sources of supply, the recommissioning of coal-fired power stations and the filling of gas stocks, the country was in a position to face the months to come.