Sarkozy Calls For EU Carbon Border Tax

by Ulrika Lomas, Tax-News.com, Brussels

31 March 2010

According to French President Nicolas Sarkozy, the European Commission intends to put forward a proposal for the introduction of a carbon tax at the borders of the European Union.

Following a recent European Council meeting in Brussels, Sarkozy confirmed that, at France’s request, the European executive is to present a text on the subject to all member states in June.

Referring to the “very frank debate” that took place within the European Council, the French President emphasized that no heads of state or government expressed their opposition to France’s suggestion. President Sarkozy noted that all member states now consider the idea of introducing a carbon tax at the borders of Europe to be an unavoidable topic for debate.

Sarkozy welcomed the diplomatic breakthrough as "a political victory”, while acknowledging the technical difficulties of introducing the tax. Sarkozy is convinced that the introduction of such a tax at European borders will serve to protect both agriculture and industries in France against unfair competition from those who continue to pollute the environment unrepentantly.

Given that the proposal requires the unanimous approval of all European Union member states, the issue undoubtedly promises to prove contentious. Britain and Sweden remain opposed to the idea, arguing that it could be equated with protectionism and ultimately be passed on to consumers in Europe.

The French President has only recently confirmed the decision to indefinitely postpone France’s own carbon tax plans, seeking a European solution instead.

Recommended