Austrian Economics Minister Wolfgang Hattmannsdorfer (ÖVP) has firmly rejected both price caps and the “windfall tax” on oil corporations, a tax advocated by Federal Finance Minister Lars Klingbeil (SPD). Speaking to the television channel “Welt” on Monday, Hattmannsdorfer emphasized his belief in free-market principles, stating, “I am a convinced market liberal; I am an Economics Minister, not a centrally planned economies minister”. He drew from historical examples, arguing that in every country that has implemented price ceilings or captured corporate profits, the economy has suffered decline. He cited Venezuela, Cuba, and Pakistan as examples suggesting that these models are unsuitable for a European member state.
Hattmannsdorfer noted that Germany and other EU members had already implemented a temporary “windfall tax” in 2022. He proposed that the focus should be on controlled market mechanisms that ensure the fall in crude oil prices reaches the consumer while maintaining high production levels of derived fuels. For him, the critical question facing policymakers is how to manage pricing structures while simultaneously preserving Europe’s energy infrastructure.
Furthermore, he criticized the alarming trend of 25 refineries closing across Europe over the last 15 years, deeming it unacceptable. Hattmannsdorfer argued that achieving true independence-which he calls the mandate of the hour-requires Europe to maintain its own capacity in refining, as well as in the extraction of oil and gas within the region. He concluded by pointing to the 2025 climate assessment from the International Court of Justice, suggesting that granting licenses for fossil fuel extraction could potentially constitute an internationally illegal action.
