Parliament on Tuesday discussed with Council and Commission the social and economic consequences of the war in Ukraine and the introduction of a windfall tax.
Catch up with the debate by VOD
The Czech Presidency of the Council and the European Commission highlighted the measures already in place to secure alternative energy supply sources, reduce energy demand and address the high market prices of electricity and gas. Commission Vice-President Valdis Dombrovskis said member states must ensure measures are properly targeted towards the most vulnerable, as blanket fiscal support would fuel inflation. He also called for prudent fiscal policies that do not exacerbate inflation.
During the debate, MEPs called on the Commission to be more proactive in addressing the current price shock. Some called for the EU to work on a solidarity package for the winter with fiscal transfers to offset the energy prices, while others proposed a “shield” to protect citizens and businesses. Other MEPs urged the EU to cushion the risk of variable interest rates on mortgages, and warned against national fiscal measures distorting competition in the single market.
In a resolution adopted on 5 October 2022, Parliament called for the EU’s response to focus on the most vulnerable and pushed for more emergency measures to ease the pressure of rapidly rising energy prices on European households and businesses. MEPs also said that further steps were needed towards introducing a tax on windfall profits. The Commission has already outlined its plans for a temporary levy, which it calls a solidarity tax.