EU ministers meet in Dublin to review bloc's economy, weigh windfall tax amid surging oil, gas prices

Eurozone finance ministers gathered in the Irish capital Dublin on Friday to review the bloc's latest economic outlook and discuss the possibility of imposing an oil and gas windfall tax following the surging oil and gas prices sparked by the U.S.-Israeli war against Iran.

Kyriakos Pierrakakis, president of the Eurogroup, said after the meeting that new developments in the Middle East have once again pushed up oil and gas prices, with a direct impact on European households and businesses.

He said Europe must accelerate its push for energy independence, which is closely tied to the continent's economy, competitiveness, and security, and is now more urgent than ever.

Global oil prices have stayed high recently, with Brent crude futures closing above 100 U.S. dollars per barrel for multiple consecutive trading days since September 9. The International Energy Agency said on Friday that the renewed escalation of conflict in the Middle East has further disrupted oil exports from the region, driving international benchmark prices higher again in recent weeks.

Higher energy prices are once again putting Europe at risk of rising inflation.

European Central Bank (ECB) President Christine Lagarde said in Dublin that interest rates would not move in lockstep with energy prices.

Energy costs and their impact on prices can also spill over into other factors such as economic growth and consumption, she said, adding that the ECB would take all of these into account when setting monetary policy.

She noted that the ECB is currently taking a prudent approach to the situation.

On fiscal policy, some EU member states have called for a windfall tax on energy companies' excess profits from rising oil and gas prices.

German Finance Minister Lars Klingbeil hoped that the European Commission would put forward a relevant proposal no later than the next meeting of the Economic and Financial Affairs Council in October.

However, the European Commission is currently taking a cautious stance on establishing an EU-wide windfall tax.

Valdis Dombrovskis, the European Commissioner for economy and productivity, said member states can decide for themselves whether to tax excess profits of energy companies, and that the commission has not proposed a unified EU-level tax scheme at this stage.

EU ministers meet in Dublin to review bloc's economy, weigh windfall tax amid surging oil, gas prices

Ukrainian President Volodymyr Zelensky said the United States has suggested that Ukraine could be offered membership in the North Atlantic Treaty Organization (NATO) in exchange for withdrawing from the Donbas, according to media reports.

"The Americans raised the question: 'If Ukraine joins NATO, would it withdraw from the Donbas?' This was the first time such a question had been raised," Zelensky told reporters in remarks released by his office on Saturday.

Zelensky has reaffirmed that Ukraine will not retreat or give up its territory. He said Ukraine was discussing a comprehensive security package with its partners that could be offered during peace negotiations.

The package includes specific security guarantees from NATO and the European Union, a strong army with a sufficient number of personnel and weapons, financial support for a specified period and a recovery plan backed by funding from clearly defined sources, Zelensky added.

Trilateral talks involving Russia, the United States and Ukraine just ended on Wednesday in Abu Dhabi, the capital of the United Arab Emirates, with no agreement announced on a ceasefire, territorial disputes or long-term security guarantees.

On Thursday, U.S. envoy Jared Kushner said in a social media post that Russia and Ukraine had agreed to expand the next round to include European partners. He said this would allow discussions on broader post-war European security arrangements alongside territorial issues.

Zelensky says U.S. proposes Ukraine to withdraw from Donbas in exchange for NATO membership