Germany Expects About $10 Billion From Energy Windfall Levy
(Bloomberg) -- Germany could reap around 10 billion euros ($10 billion) by skimming off windfall profits from energy companies benefiting from market disruption, according to Finance Minister Christian Lindner.
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The government in Berlin plans to work out the details of the levy as soon as possible, Lindner told Bloomberg Tuesday on the sidelines of a conference in Berlin. The additional revenue will be used to finance part of a 65 billion-euro relief package unveiled this month to help citizens and companies cope with soaring energy prices.
Chancellor Olaf Scholz’s ruling coalition backed European Union proposals to tax windfall profits after surging earnings at some energy companies triggered public outrage. Divisions remain between EU member states that have different priorities and exposure.
European Commission President Ursula von der Leyen said Wednesday the bloc could raise more than 140 billion euros to cushion the cost-of-living blow for consumers if it caps revenues from low-cost power producers such as wind and solar.
Lindner, who leads the business-friendly Free Democrats, said his pledge not to introduce new taxes would effectively be kept as windfall profits would be redistributed by reversing a mechanism that previously subsidized renewables via electricity bills. That levy ended in July to avoid burdening households.
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