The oil giant disputes the tax on excess profits in energy.
Brussels
Rebellion in sight against the “solidarity contribution”? A first blow has just been dealt by ExxonMobil Corp. The American oil giant has decided to appeal to the Court of Justice of the European Union (CJEU) against this tax on the superprofits of the energy giants, which comes into force on December 31, considering that the Council of the European Union has exceeded its legal authority.
In September, the Twenty-Seven agreed on a package of measures to help fight against high energy prices. The key element was this “exceptional solidarity contribution” at a tax rate of at least 33% on any taxable profit in 2022-2023 that is 20% higher than the average profit for the last four years. According to the European Commission, some 25 billion euros should thus go to the coffers of the States and contribute to financing the actions carried out to “reduce the cost of energy bills” consumers. Analysts expect at most 10 billion euros. The Europeans had then taken great care not to speak of “tax” because what falls under taxation requires unanimity. Today, the European executive “maintains that the measure is in full compliance with EU law”. The Twenty-Seven were right to resort to an emergency text (adopted by the States without consultation with the European Parliament) in the name of the “solidarity” face of the energy crisis, insists a spokesperson.
Threat to investments
Could it be that Exxon’s decision is above all a message addressed to the American president, who evokes the idea of imposing a similar tax on American oil companies? Anyway, the procedure could inspire the industry, while a wind of protest is already blowing in Italy or Spain, where the oil and gas group Cepsa threatens to sue Madrid. In Belgium, Engie is headwind against measure.
The fear now is that companies will reduce their investments in Europe, as Exxon threatens to do. The exceptional profits tax is ” counter productive ” and discourages investment, assures the spokesperson for the American giant. “European industries are already facing a very real competitiveness crisis and governments should support the production of reliable and affordable energy”, he defends. Before adding that the company will take into account the 2 billion dollars that the measure will cost it in 2023 in any decision on its future investments in Europe for energy supply and transition. Not without recalling the importance of these investments to get Europe out of dependence on Russian energy and achieve its green objectives.
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