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EU to publish draft proposal to tackle energy crisis

On the 13th local time, a number of media quoted EU internal sources as saying that the EU is about to publish a draft proposal to deal with the energy crisis that may worsen this winter.

According to the draft proposal disclosed in advance by a number of media, the EU will require oil, natural gas, coal and related refining and processing companies to participate in "solidarity donations" to help European countries ease the energy crisis. The excess profit is calculated, and the funds raised will be used to help consumers and certain industries buffer against soaring energy prices.

"Unity donation" is a windfall profit tax in disguised form essentially. Previously, countries such as Germany and Italy have introduced policies successively to levy windfall profits tax on energy companies. The European Commission believes that the profits of oil, gas and coal companies will increase fivefold in 2022 compared with the same period last year, so it is reasonable to ask them for "solidarity contributions".

In addition, the draft will require EU member states to reduce current electricity consumption by 10% and natural gas use by 15% to ensure that people in various countries "passing the winter safely".

The European Commission has proposed to reduce energy prices previously by limiting Russian gas prices, but this proposal was opposed by many member states, so restricting Russian gas prices was not included in the draft proposal.

According to reports, the European Commission plans to publish the draft proposal formally on the 14th. EU energy ministers are scheduled to hold an emergency meeting on the 30th of this month to discuss the draft.

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