In a new report to the Council on the application of Council Regulation (EU) No 2022/1854, the Commission assesses how Member States have applied the solidarity contribution or an equivalent national measure to the unexpected surplus profits made by the fossil industry in the European Union (EU). This emergency measure was adopted by the EU during the energy crisis in 2022 to contribute to the affordability of energy for households and businesses.
Under the measure, Member States must apply either the solidarity contribution or an equivalent national measure to the surplus profits of the fossil industry. The Council Regulation considers that taxable profits in the fiscal year 2022 and/or 2023 of such companies, which are above a 20% increase of the average profits generated in the fiscal years 2018-2021, should be considered as surplus profits, and therefore subject to the solidarity contribution at a rate of at least 33%. Alternatively, Member States could opt to enact an equivalent national measure in each Member State. A recent Flash Eurobarometer confirms strong support among Europeans (86%) for such measures to help protect consumers and companies by limiting the immediate impact of the volatility of energy prices on their budgets.
The report sheds light on market developments in the fossil fuels sector covered by this emergency intervention since the measure was adopted in autumn 2022. Analysis by the Commission services of price developments in the fossil fuel sector point in the direction of gradually decreasing energy prices in 2023 even though volatility remains present.
Against that backdrop, the report describes in detail the type of measures applied by Member States and their respective specificities. Most Member States apply the solidarity contribution while eight Member States have opted for the adoption or application of an enacted equivalent national measure.
In addition, three Member States reported that they do not have any companies or permanent establishments in scope of the Regulation. Finally, the report gives a first overview of the estimated total proceeds reported by Member States, which overall stand at around EUR 17.5 billion.
The Commission will present a new report in Autumn 2024, as required by Council Regulation (EU) No 2022/1854. A final figure for the total proceeds collected under the Regulation will only become available by then because Member States can decide to apply the measures for one of the fiscal years 2022 or 2023, or to both fiscal years.
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Details
- Publication date
- 30 November 2023
- Author
- Directorate-General for Taxation and Customs Union