BRUSSELS, March 20 (Reuters) - The European Commission will propose that EU countries cut taxes on electricity and subsidise prices as a quick way to soften the energy price shock caused by the U.S.-
EU to Propose Cutting Electricity Taxes to Combat Iran War Energy Crisis
European Commission's Response to Energy Price Shock
BRUSSELS, March 20 (Reuters) - The European Commission will propose that EU countries cut taxes on electricity and subsidise prices as a quick way to soften the energy price shock caused by the U.S.-Israeli war on Iran, Commission head Ursula von der Leyen told a news conference.
Taxation Disparity and Proposed Changes
"In some cases, electricity is taxed much more than gas, up to 15 times more. And this cannot be so. We will propose to lower tax rates on electricity and to make sure that electricity is taxed less than fossil fuels," she said.
State Aid Measures for Energy Costs
"Member states can already make use of state aid measures to compensate for the cost increases of the energy source, and we and we will further flexibilize state aid," she said.
Financial Support and Industry Investments
Von der Leyen also said she proposed to leaders financial support to the industry through investments that would help companies move away from fossil fuels.
Emissions Trading System (ETS) Investment Booster
"We call it an Emissions Trading System (ETS) investment booster. It will have a budget of round about 30 billion euros. It is financed by 400 million ETS allowances. And the aim is to finance projects for decarbonization," von der Leyen said.
Reporting and Editorial Credits
(Reporting by Jan Strupczewski, editing by Bart Meijer)
