In response to the sharp rise in gasoline and diesel prices, SPD politicians have voiced support for a so‑called “excess profit tax”. European Parliament member Jens Geier told “Der Spiegel” that the current price gouging “has nothing to justify it”. He explained that the gasoline sold today had, months ago, been subsidised and weeks ago, processed at refineries. “Back then the war in Iran was not yet underway, and the price spikes on energy exchanges hadn’t occurred” he said.
Geier reminded listeners that, after the energy‑price shock linked to Russia’s broader war in Ukraine, governments had already siphoned off crisis profits from major corporations. He urged the EU Commission to “show willingness to reassess the instruments created in 2022 and to subject them to a thorough review, including an evaluation of whether they remain fit for purpose”.
Manuela Schwesig, the Prime Minister of Mecklenburg‑Vorpommern and fellow SPD member, noted that the ideal solution would be to prohibit the companies’ “disgusting price gouging” under antitrust law. Nonetheless, she said an excess‑profit tax remains an option. “An alternative is the extraction of speculative gains” she told “Der Spiegel”, citing the 2022 energy crisis when a similar measure succeeded.
In 2022‑23, oil, gas, coal, and refinery conglomerates were already subject to a temporary solidarity surcharge at the EU level, requiring a 33 % additional tax on extraordinary profits. This surcharge defined “extraordinary profit” as earnings exceeding average profits of the previous four years by more than 20 %.
Economically, however, the state’s attempt to capture these “fortuitous gains” is contested. Dominik Enste from the Institute for Applied Economic Research in Cologne described an excess‑profit tax as morally understandable but economically and regulatory‑policy risky. He argued that high profits reflect an amoral market logic, praising scarcity rather than performance. “The market rewards scarcity, not merit” he said. According to Enste, altering the aftermath of this logic could, over the long haul, weaken both investment and innovation.
