Responding to an Energy Crisis: An Assessment of Italy's ‘Solidarity’ Contribution on Surplus Energy Profits

Italy, like other Member States, addressed the 2022 energy crisis with a set of measures aimed at impacting retail prices, wholesale prices and extra profits. This article focuses on the Italian extraordinary contribution on profits generated by the price fluctuation caused by the energy crisis, set forth by Art. 37 of Law Decree 21 of 2022. After a description of this windfall tax, the main misalignments it has with the EU legal framework and with the principles stemming from the Italian Constitution will be addressed. The Article then examines the referral made by the Rome Tax Court for a preliminary ruling by the Constitutional Court on the validity of the Italian windfall tax. It concludes with some final remarks on the consequences of taking extraordinary measures by Member States that deviate from the EU legal framework.