EU finance ministers inch toward broader energy flexibility and discuss windfall profit tax

Eurogroup ministers concluded two days of difficult talks with a near-consensus on widening the energy flexibility granted to member states, now covering both investment projects and direct support measures for consumers, including fuel-pass schemes. Greece and Italy backed the move, while other countries expressed concern about sending a misleading message during current bond-market turbulence. The agreement still requires technical work within the European Commission before it can be finalised, and the issue will be revisited at next week’s summit of EU leaders.

In parallel, the council of finance ministers debated the introduction of a Europe-wide windfall profit tax on oil and energy companies, a proposal championed by Germany, Spain, Portugal, Italy, Poland and Austria. The Commission indicated it will prepare a legislative proposal after the Luxembourg meeting, noting the urgency caused by soaring energy prices and their impact on households.