BERLIN, March 27 (Reuters) - A working group in Germany's ruling coalition has asked the government to consider additional measures such as a windfall tax and price caps in order to cushion Germans
German Coalition Mulls Windfall Tax to Counter Rising Energy Prices
Government Response to Energy Price Surge
Proposed Measures to Cushion Consumers
BERLIN, March 27 (Reuters) - A working group in Germany's ruling coalition has asked the government to consider additional measures such as a windfall tax and price caps in order to cushion Germans from a price surge due to the Iran war, lawmakers said on Friday.
Additional Recommendations by Lawmakers
The group of conservative and centre-left lawmakers also suggested lowering electricity costs for households, cuts to energy tax and bringing coal power stations back online.
Analysis of the Current Situation
"There is no supply problem, but a price problem," said Armand Zorn from the centre-left Social Democrats.
Impact of the Iran Conflict on Energy Markets
The additional measures are based on a scenario of the war dragging out and the Strait of Hormuz remaining shut to most shipping for an extended period.
Global Energy Supply Disruptions
Iran has effectively blocked the Strait of Hormuz, which carries about 20% of global oil and liquefied natural gas, driving up energy prices and roiling financial markets.
(Reporting by Holger Hansen, writing by Matthias WilliamsEditing by Ludwig Burger)
