Germany considers windfall tax and energy measures amid rising costs

13:45

Germany’s ruling coalition is evaluating a series of measures, including a potential windfall tax, to address the sharp rise in energy prices affecting households and businesses. The proposals come as policymakers respond to economic pressure linked to geopolitical tensions in the Middle East.

A working group made up of conservative and centre-left lawmakers has suggested several options to ease the burden on consumers. These include reducing electricity costs, lowering energy-related taxes, and temporarily increasing the use of coal-fired power plants to stabilize supply.

Officials have emphasized that the current challenge is not a shortage of energy resources but rather the high cost of access. The situation has been exacerbated by disruptions in global energy markets, particularly due to tensions affecting key shipping routes such as the Strait of Hormuz.

The proposed measures are based on the possibility of a prolonged crisis, with policymakers seeking to balance affordability, energy security, and environmental considerations.