In the document presented by the head of government, it is argued that the “partial” retention of the extraordinary profits of some energy operators would make it possible to create “a financial cushion that should be used to alleviate the weight carried by consumers in Europe” due to the high energy prices.
The German government will advocate for the implementation of this idea throughout the European Union (EU) but, if necessary, is ready to act at the national level.
The reform proposed by Berlin is not the same as the income tax reform decided by several European governments, said Finance Minister Christian Lindner.
One difference in the German government’s plan lies in the omission of the term tax, which was strongly opposed by Lindner, who clarified that the proposed figure would not be “a source of income that can be planned,” the AFP news agency reported.
It would be a mandatory contribution imposed on the energy sector to alleviate prices that could contribute “tens of billions of euros” to public coffers, assured the Minister of Finance.
Like the entire EU, Germany is facing a sharp increase in electricity prices and fears for its own energy supply.
Scholz said today that his country has enough energy supplies and reserves to face the coming winter, after Russia cut off its gas shipments through the Nord Stream I gas pipeline.
“Russia is no longer a reliable supplier of energy”so the German government made “decisions in time” to avoid a crisis this winter, such as filling gas tanks, diversifying suppliers or reactivating coal-fired power plants, Scholz explained.
“We will face this winter,” he concluded.
Source: Ambito
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