Chancellor Friedrich Merz sees various options to ease the burden from sharply rising petrol prices in Germany but has ruled out a windfall tax on energy companies, saying both the facts and the law are against this.
"I do not see at the moment a sufficient factual basis and also no legal basis for the taxation of so-called excess profits," the German leader said in Berlin. "So we will have to come up with something simpler, something else." Merz spoke at a press conference following talks with Iraqi Prime Minister Ali al-Saidi.
The beleaguered chancellor, who is facing ever lower approval numbers amid ever rising fuel prices, said the Finance Ministry is working on a mechanism for direct payments to private households. In the meantime, other options still needed to be discussed and there were proposals.
"We basically have several options," the chancellor said. "We can look at various taxes and levies to help consumers in Germany now."
SPD Finance Minister Lars Klingbeil is pushing for a windfall tax on extra profits by oil companies to finance support for consumers.
Merz said, "I see the need" for relief. "We will talk about this topic in the coalition and I also hope to come to solutions soon."