Several countries are willing to consider an Italian proposal of hitting oil companies with a windfall tax, following growing calls for government action amid soaring oil and food prices.

Giulio Tremonti, Italy's newly installed economy minister, suggested at a meeting with his EU counterparts in Luxembourg the idea of a so-called 'Robin Hood' tax which could be applied to oil companies and used to help those hit hardest, according to Agence France-Presse.

'Given the dramatic needs of the lowest social levels, for us this kind of tax makes sense,' Tremonti told reporters.

Christine Lagarde, French finance minister, said at the meeing: 'It's certainly an intelligent proposal but the impact and its application have to be measured, not only in terms of record profits but also in terms of (the impact on) investment,' she said.

Further reading:

Union urges PM to impose windfall tax on oil companies