http://www.planetark.org/dailynewsstory.cfm/newsid/19018/story.htm

EU to aim for energy taxation deal in January

EU: December 13, 2002

BRUSSELS - European Union finance ministers will aim to reach a deal 
in January on planned common rules for the taxation of energy 
products, German Finance Minister Hans Eichel said.

Germany had been blocking the planned EU bill as it was opposed to 
granting France and Italy an extension of tax-breaks for road 
hauliers, but there was a clear indication that differences had been 
bridged at a EU finance ministers' meeting in Brussels.

"I am assuming that in January an agreement on energy taxation will 
come," Eichel told reporters after the protracted meeting which was 
taken up with discussions on taxing interest on savings.

Belgium Finance Minister Didier Reynders had also earlier indicated a 
deal on harmonised rules for the taxation of energy could be on the 
cards.

"I have the feeling...that we are practically all in agreement on the 
energy dossier," Reynders told a news briefing on the sidelines of 
the meeting earlier in the day.

"There are no more differences between Germany and France on this point."

The EU has debated for years the merits and drawbacks of setting 
minimum tax levels for energy products, but has never agreed on the 
matter which requires unanimity among the bloc's 15 member states.

Currently the EU only has minimum energy tax levels on mineral oils. 
The new rules would impose tax floors for a range of other energy 
products.

Environmentalists see energy tax as an essential policy to spur 
companies and individuals to use energy frugally and reduce the 
pollution caused by fossil fuels and nuclear power.

REUTERS NEWS SERVICE

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