Germany backs down in fight against gas tax – POLITICO
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The deficit arose when Germany purchased large quantities of expensive gas for its own domestic needs at the height of the energy crisis following Russia’s large-scale invasion of Ukraine. In response, Berlin imposed additional fees at cross-border points where gas leaves the country.
But the Gasspeicherumlage – or gas storage surcharge – immediately caused consternation among neighboring EU member states, which need German infrastructure to transport fuel. In February, the Czech Republic, Austria, Hungary and Slovakia jointly asked Berlin to abandon the levy after it was increased several times in two months.
But cost isn’t the only issue at play.
The countries said the measure undermined the EU’s single market, which allows goods to move freely across borders. And, they added emphatically, it dissuaded them from abandoning Russian fossil fuels, as the tax raised the price of alternatives.
The EU appears to share these concerns and has started examining whether the measure violates single market rules. Earlier this year, the European Commission, the EU’s executive branch in Brussels, told Germany the measure may not be legal and indicated it would take Berlin to court if it did not change no heading.
“For us, there are reasons to consider that this is a blatant violation of competition law and single market rules,” a senior Commission official told POLITICO in April.
Politico