Guardian: Special report: the petrol war

Andrew Osborn in Brussels and Jon Henley in Paris
Thursday September 21, 2000

Britain last night refused to consider harmonising fuel tax across the
EU but came under renewed pressure to cut duty at home as France
announced more concessions.
The French prime minister, Lionel Jospin, said he would introduce new
fuel tax compensation measures next month.

The unexpected announcement makes it even more difficult for Tony
Blair to refuse to review fuel tax in the light of last week's
protests.

There was little progress, however, at an emergency meeting of EU
transport ministers in Luxembourg attended by the transport minister,
Lord Macdonald.

The European commission was pushing for some kind of EU-wide fuel tax
but Lord Macdonald was unwilling even to discuss the matter.

"This meeting is about transport policy and not taxation," he said
before talks began.

The meeting was called by France at the height of the fuel protests
but it looked unlikely last night that it would produce any kind of
significant agreement and many ministers said they thought it had been
convened too late.

The European commission has launched an inquiry to see whether
concessions granted by Belgium, France, Italy and the Netherlands
breach EU state aid rules.

If they do, tax breaks and payments of state aid to truckers and
others across Europe in recent weeks will have to be cancelled and
repayment demanded.



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