Brussels calculates that the new European tax on extraordinary profits from energy companies will allow it to raise "140,000 million euros"

What for the PP is typical of the "most bilious communism of the 20th century"For the European Commission, it is the way to face an unprecedented energy crisis, aggravated by gas cuts by Russia as a reaction to the EU's support for the invaded Ukraine. This Wednesday the president of the Community Executive, Ursula von der Leyen, has advanced some data of her proposals to face the harsh winter in the debate on the State of the Union, in the plenary session of the European Parliament in Strasbourg. According to Von der Leyen, the new European tax on extraordinary profits from energy companies will allow the collection of “140,000 million euros”.

Millions of Europeans need support to pay their energy bills.

Some companies produce electricity at low cost and make great margins.⁰
We propose a cap on their revenues that will raise more than €140 billion.

And we will deeply reform our electricity market.

– Ursula von der Leyen (@vonderleyen) September 14, 2022

The proposals approved in the college of commissioners in a context of record inflation data and shadows of recession while the ECB risks suffocating the economy with unprecedented rate hikes, consist, according to what has been circulating, of: that the EU countries reduce their average electricity consumption by 10% and that this saving is at least 5% in peak hours; limit the income of electricity companies, setting a ceiling in the electricity market of 180 euros per megawatt/hour for generation from renewable, nuclear and lignite sources –less than the 200 euros that circulated in drafts a week ago–; and to set a 33% rate on windfall profits from fossil fuel companies (oil, gas, coal, and the refinery sector), which are fattening up thanks to high gas prices.

Of course, the European Commission recognizes that it needs more time for two other measures for which the EU energy ministers have asked for guidance: putting a cap on the price of gas and increasing the liquidity of the financial markets for energy futures.

From here, a negotiation period opens with the 27 to reach an agreement at the extraordinary meeting of energy ministers convened for September 30 in Brussels.

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