Clear rejection from Brussels: no EU windfall tax – Member States should follow this line

The European Taxpayers’ Organisation (TAE) expressly welcomes the European Commission’s decision to refrain from introducing a Europe-wide excess profits tax. This clear rejection sends an important signal regarding economic prudence, investment security and budgetary discipline in Europe.

An excess profits tax may appear politically attractive, but it is economically problematic. It interferes arbitrarily with functioning markets, penalises business success and creates considerable legal uncertainty. Especially in times of economic uncertainty, Europe needs stable and reliable framework conditions – not further tax experiments.

The TAE strongly warns Member States against unilaterally introducing excess profits taxes. Such measures would further fragment the European single market, hamper investment and force companies to relocate their activities to regions with more stable tax regimes.

Instead of short-term revenue increases through special taxes, sustainable reforms are needed: competitive tax systems, less bureaucracy and consistent spending discipline. The European Commission’s decision should therefore be understood as a guideline – not as a call for unilateral national measures.

In conclusion:

Europe does not need new special taxes, but trust, stability and growth. The rejection of an excess profits tax is a step in the right direction. It is now up to the Member States to follow this example.

Brussels/Munich, 23 April 2026