Germany's coalition clashes over windfall tax for fuel discounts
"We stand by our position: companies must not be allowed to exploit crises to enrich themselves at the expense of the majority," Wiebke Esdar, the SPD parliamentary group's executive board member responsible for budget and finance, told Der Spiegel.
"We should now also explore national options," the left-wing Social Democrat added. "Those who profiteer must pay the price."
Her remarks come amid a dispute within Germany's black-red coalition over the introduction of a windfall tax, which Finance Minister Lars Klingbeil (SPD) intends to use to fund a planned 17-cent fuel discount. After protracted negotiations, SPD leader and Vice Chancellor Klingbeil had reached a compromise with Chancellor Friedrich Merz (CDU) to impose a windfall tax on oil companies—but only if the European Union adopts a corresponding measure. That prospect, however, appears increasingly unlikely. On Wednesday, European Commission Vice President Teresa Ribera offered little cause for optimism.
Esdar criticized the European Commission, stating, "A conservative majority in Europe is making it difficult to introduce a windfall tax." She stressed that the measure remained the right course of action. "Not all member states are on board at the moment, which is why the Commission currently sees little scope for implementing such a tax."
Klingbeil is set to address energy taxation this Friday. Sources from his ministry indicate that they continue to push for a windfall tax and are "exploring all possible avenues for implementation." They also plan to keep advocating for an EU-wide solution in Brussels, emphasizing that this approach aligns with their coalition partner's position. Klingbeil insists that the fuel discount must be offset and that the agreement with the Union was based on the windfall tax.
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