Meeting an opportunity for initial views on energy windfall tax – Simon Harris

A meeting of European Union finance ministers in Dublin is an opportunity for member states to give “initial views” over a potential windfall tax on energy companies, Tanaiste Simon Harris said.

However, Ireland’s deputy premier said the best way to tackle spiralling energy prices would be “de-escalation” of tensions in the Middle East.

As part of its presidency of the EU, Ireland is hosting a meeting of finance ministers at Dublin Castle.

Six EU member states asked that the topic of a windfall tax be discussed at the meeting.

Germany, Spain, Portugal, Italy, Poland and Austria wrote to the Irish Government requesting an EU-wide approach to windfall taxes be added to the agenda.

Mr Harris said he would hold an informal discussion on the issue over lunch which would be an opportunity for states “to give some initial views in relation to their perspective on windfall energy tax”.

He added: “There are different views in different member states, and then I’m likely to ask the European Commission to return to this issue with some further thoughts at the formal Ecofin (Economic and Financial Affairs Council) in October in Luxembourg.

“I know that format is very much to the satisfaction of those who signed the letter.”

Mr Harris said Ireland would be an “honest broker” in relation to the discussions.

He added: “Domestically is, we have introduced one in the past.

“You’ll remember when there was European architecture put in place at the start of Russia’s brutal illegal invasion of Ukraine.

“A number of member states, including Ireland, did indeed pass legislation to put one forward, so that perhaps gives you an insight into how the Irish Government has viewed these things.

“But my job in the presidency is to take stock of members’ views.

“I think there will be different views across different member states, but it is absolutely true to say that households and businesses right across the European Union and Ireland is no different, are under real pressure as a result of rising energy prices at a time when some companies are making extraordinarily large profits, not on the basis of enterprise or innovation, but just on the basis of being accidental beneficiaries of the closure of the Strait of Hormuz.

“While finance ministers, both at a European level and at a domestic level, are all looking at all of the levers at our disposal to assist our citizens and to try and manage inflation at this time, the greatest economic intervention we can see in relation to energy prices is de-escalation in the Middle East and the reopening of the strait.

“That would be more impactful than any economic measure any finance minister or indeed all finance ministers together could take in relation to energy prices.”

Mr Harris said the meeting would focus on a number of areas including banking competitiveness, innovation in financial services and AI.