Italy is grappling with soaring fuel prices, with self-service gasoline exceeding €2 per liter and diesel at €2.131. The temporary diesel tax cut, which cost around €125 million, expired on August 6, and a general discount of 20-25 cents per liter would cost approximately €140 million weekly. This situation has led to calls for action, including a potential tax on energy company windfall profits.
The European Commission has clarified that the taxation of extra profits falls within the competence of member states, reiterating its stance from April. This position effectively dismisses the idea of a common EU-wide windfall tax, as requested by Italy, Germany, Austria, Portugal, Spain, and Poland. Instead, Brussels suggests national governments can implement such measures while adhering to EU law, offering assistance and good practices.
Within Italy's ruling coalition, there is division. While the League supports a windfall tax, Forza Italia, led by Antonio Tajani, opposes it, arguing that "extraprofit" is not a legal concept and is an "anti-industrial, anti-business, anti-market" idea. Tajani, however, is open to a voluntary contribution negotiated with oil companies, similar to agreements made with banks and insurance companies. He specifically mentioned Eni and Claudio Descalzi as potential partners for such a dialogue.
Finance Minister Giancarlo Giorgetti is considering options to address the crisis, including a potential new fuel decree to reactivate the "floating excise duty" mechanism, possibly supplemented by additional funding. However, the minister noted that a general discount on fuel costs about €1 billion per month, highlighting the financial constraints. The government is also exploring more targeted aid. Meanwhile, Prime Minister Giorgia Meloni and Giorgetti had a discussion about the need for prompt action. The crisis is exacerbated by geopolitical factors, including the Strait of Hormuz closure and Houthi incursions, putting about 25% of global trade at risk.
