EU Finance Ministers Fail To Reach Agreement On Energy Taxation

by Ulrika Lomas, Tax-News.com, Brussels

20 February 2003

It emerged following Tuesday's Ecofin meeting of European Union Finance Ministers that no agreement has yet been reached on the adoption of a common energy tax regime.

Although the directive has been on the table since 1997, there are still several disputed issues, with Italy and Austria in particular expressing concern over various provisions. The Italian government has insisted that its road hauliers should continue to benefit from tax breaks until the end of 2004, a policy which it adopted in response to fuel protests in late 2000.

According to reports in the Italian media this week, the country could face infringement procedures by the EU if it refuses to back down. However, the EU Observer news service quoted Italian Finance Minister, Guilio Tremonti as announcing after the meeting that Italy is 'not the only one' with concerns about the energy tax directive. 'We are trying to achieve a final position that satisfies all parties,' he explained.

Greek Finance Minister, Nikos Christodoulakis announced that he is optimistic that the negotiations will reach a conclusion soon: 'We have made immense progress, but there are still issues that need to be clarified,' he revealed.

According to the EU Observer, discussions will continue at the next Ecofin meeting on March 7. However, a certain sense of urgency has been conveyed upon the proceedings by the need to find a common framework on energy taxation before enlargement takes place.

Recommended