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Germany goes all out for purchasing power, Bercy gets involved in superprofits

2022-09-04T17:29:13.770Z


The services of Bruno Le Maire hastened to let it be known that Germany, contrary to what certain media were announcing, is not insta


The subject of the tax on superprofits divides even within the majority and the services of Bruno Le Maire seem to take the question very seriously.

For good reason, some disagreements are felt between him and Prime Minister Élisabeth Borne, especially since the latter indicated that she was not closed to this idea.

"I don't know what a superprofit is," retorted the boss of Bercy, a fervent opponent of the implementation of such a reform.

Read alsoSuperprofits: the funny ride of Elisabeth Borne and Bruno Le Maire

And now the subject comes back through a back door.

German Chancellor Olaf Scholz has just announced a 65 billion euro plan to boost purchasing power.

A large check, which should make it possible to cope with the effects of the economic crisis and the rise in prices, driven by the energy crisis in these times of war in Ukraine.

In particular, the Chancellor wants the exceptional profits made by certain energy companies thanks to soaring market prices to be used to relieve household bills.

Several tens of billions of euros expected

The reform desired by Berlin, however, differs from the taxation of exceptional profits made by energy groups, decided by certain governments in Europe, underlined the Minister of Finance, Christian Lindner.

The government discussed this "controversial idea, "but there are constitutional reservations about it," adds the leader of the Liberals, who is strongly opposed to the principle of a tax.

He stressed on Sunday that it was "not a source of income that can be planned and which makes it possible to organize a rapid relief" of the household bill.

If the word tax is not used, it should indeed be a compulsory contribution imposed on companies in the energy sector intended to reduce the price of electricity paid by households and companies.

It could bring in “several tens of billions of euros”.

At Bercy, we seem to want to avoid any ambiguity about German ambitions.

In a message sent to companies just after the announcements across the Rhine, the services of the Ministry of Economy and Finance saw fit to recall that the measure unveiled this Sunday by Berlin did not in any way constitute the implementation to come. a tax on superprofits.

"This is exactly what France is doing", assures Bercy

"The German government has absolutely not announced a tax on the superprofits of energy companies," insisted Bercy in a message sent to journalists a few hours after Berlin's announcement of its support for a mandatory contribution from energy companies, the terms of which would be set at European level.

“Germany is setting up a compulsory contribution from companies that benefit from the price of gas while they produce electricity from coal, nuclear or renewable energies”, we say in Paris.

Read alsoWhat are “superprofits”?

Five minutes to figure it out

“This is exactly what France is doing with renewable energies or in another way with (the energy company) EDF by increasing the volume of Arenh

(regulated access to historical nuclear electricity)

 ”, indicates Bercy.

“The mechanisms are not necessarily the same, but the logic is (…) and it has nothing to do with taxation”, tried to clear the ministry, while calls to tax the exceptional profits of large companies like TotalEnergies or CMA CGM have multiplied since this summer in France.

This Sunday, the German government also made known its intention to plead for the introduction, at European level, of a compulsory contribution to be paid by companies in the energy sector.

The measure is “not tax law”, hammered the Minister of Finance, the Liberal Christian Lindner.

If the European discussions do not succeed - the Member States are to meet next week around energy issues - Berlin says it is ready to go it alone by adopting a measure at national level.

Source: leparis

All business articles on 2022-09-04

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