Germany's Merz sees no grounds for windfall tax as fuel prices spike

German Chancellor Friedrich Merz will discuss ways to help consumers shoulder a spike in fuel prices within his coalition but does not support a proposed windfall tax on energy companies, he told reporters in Berlin on Tuesday.

"At the moment, I see no sufficient factual basis nor any legal basis for taxing so-called excess profits," Merz said at a press conference with Iraqi Prime Minister Ali al-Zaidi, adding that Germany could only tax companies based in the country.

"We can look at various taxes and fees to help consumers in Germany right now," Merz said. "We will discuss this issue within the coalition, and I hope we will find solutions soon."