US oil company Exxon sues EU over random profit

US oil company Exxon sues EU over random profit tax

Energy company Exxon sued the EU over the new surplus profits tax. A spokesman for the US group complained on Wednesday that the European Union had exceeded its powers. The tax is counterproductive, makes investments unattractive and undermines investor confidence. Exxon will factor the tax into its considerations for future billion-dollar investments in Europe’s energy supply.

The EU Commission said it would take note of the process. It is now for the General Court to decide. However, the Brussels official emphasized: “The Commission remains of the opinion that the measures in question are fully compatible with EU law.”

EU-wide measures were decided at the end of September. They affect not only producers of cheap electricity from renewable and other sources, but also oil, coal and gas companies and refineries. They must pay a solidarity tax of at least 33% on their excess profits. The money is also to be used to fund relief for citizens and businesses. According to estimates by the EU Commission, the temporary solidarity contribution could yield €25 billion.