Clear Rejection from Brussels: No EU Excess Profit Tax – Member States Should Follow This Course

The European Taxpayers Organisation (TAE) expressly welcomes the European Commission's decision to refrain from introducing a Europe-wide excess profit tax. This clear rejection sends an important signal for economic prudence, investment security, and fiscal restraint in Europe.

An excess profit tax may seem politically appealing, but it is economically problematic. It arbitrarily intervenes in functioning markets, penalizes entrepreneurial success, and creates considerable legal uncertainty. Especially in times of economic uncertainty, Europe needs stable and reliable framework conditions – not additional tax experiments.

The TAE strongly warns member states against introducing excess profit taxes unilaterally. Such measures would further fragment the European single market, stifle investment, and force companies to relocate their activities to more tax-stable regions.

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 an invitation for unilateral national action.

In conclusion:

Europe doesn't need new special taxes, but rather trust, stability, and growth. Rejecting an excess profit tax is a step in the right direction. Now it is up to the member states to follow suit.

Brussels/Munich, April 23, 2026