Oil? Ireland admits new debate in the EU requested by Portugal

“ Without wanting to anticipate today’s discussion, I imagine that this will be an opportunity for the different participants to present some initial views on their outlook on an extraordinary energy profit tax,” Irish Finance Minister Simon Harris, a country holding the rotating presidency of the Council of the European Union (EU) this semester.

“ There are different positions in the various Member States and, subsequently, it is likely that you will ask the European Commission to come back to this issue by presenting some additional reflections at the Ecofin formal in Luxembourg in October”, the governor added, in statements at the arrival of the euro area and EU finance ministers in Dublin.

Simon Harris added that “this format is very pleasing to those who signed the letter.”.

A first debate on the matter is planned for today, which the Irish ruler decided to include in the lunch of the EU Finance Ministers after receiving the letter from the six countries – Portugal, Germany, Austria, Spain, Italy and Poland – with such request.

The person responsible promised to be an “biased mediator”, but it is true that Ireland, like other countries, has already approved such a measure in the past, after the energy crisis triggered by the Russian invasion of Ukraine.

The Portuguese Government has today suggested that the European Commission should use the national methodology as a basis for a possible European solution to tax the extraordinary profits of oil companies, which has been rejected by Brussels.

“ There will be a first discussion, because during the day, the six countries – where Portugal is included – who signed the letter, will make this position, trying to convince the Commission of the arguments and that the Commission should move forward with a common proposal,” said Finance Minister Joaquim Miranda Sarmento.

In statements to the Lusa agency at the entry to the informal meeting of the euro-area finance ministers in Dublin by the rotating presidency of the Council of the European Union, the Portuguese guardian considered that a Community rather than national measure would bring “saveguards in the sense that it would now be applied to the entire European area and therefore be more harmonised among all”.

“Portugal still has the fact that it has already advanced and is under discussion in Parliament a proposal and, therefore, even the Portuguese methodology itself can serve as a starting point for the definition of a European methodology,” said Joaquim Miranda Sarmento.

Portugal, Germany, Austria, Spain, Italy and Poland have, through two letters to the European institutions, been defending a common response to tax the extraordinary profits of oil companies, arguing that the war in the Middle East is pressing energy prices while oil companies have high profitability levels and refining margins above the rise in the price of crude oil.

Brussels has, however, considered that the taxation of extraordinary profits is a competence of the Member States.

Portugal has approved a proposal to create a Temporary Solidarity Contribution on the Oil Sector, applicable to the results of 2026, which provides for a 33% rate on the relevant share of the results that exceeds by more than 20% the average profit recorded in 2024 and 2025 by the crude oil and refining companies.