Brussels, 19/01/2001 (Agence Europe) - The EcoFin Council did not reach agreement on Friday on the renewal of certain exemptions that Member States benefit from in relation to the Community excise duty regime for mineral oils. Talks, which were in fact quite short, essentially broke down on the problem of exemptions requested by France, Italy and the Netherlands on diesel used by hauliers. Exemptions that Germany, backed by Austria, especially opposed, due to distortions to competition. "Progress was nevertheless recorded", said Swedish Finance Minister Bosse Ringholm, who chaired the meeting. Work is to continue at technical level on the basis of a compromise put forward by the Presidency, in the hope of reaching agreement at the EcoFn Council of February.
The Swedish Presidency proposes extending all exemptions in force for six years (including those that the Commission was considering abolishing concerning fuel for private aircraft and boats), except for those on diesel for hauliers, which could last only two years, non-renewable. It also provides for the advantages granted to hauliers in 2001 being lowered the following year. This compromise was regarded as a good working basis by most delegations, including Germany, Italy and the Netherlands, said a European source. France, however, remains reluctant, refusing to commit itself now "not to ask for an additional extension beyond a two-year period.
"The current mechanism for partial reimbursement (of excise duties) does not pose a competitive problem as all European carriers may benefit from it on French territory", explained Mr Fabius. Also, "even after this relief, the tariffs remain higher in France than in 12 other members of the EU". The rest of the project does not seem to pose a real problem, except Ireland, which for now benefits from almost permanent derogations for certain industries mainly in the aluminium sector, and which fears having to give this up in six years' time.
"The Commission is disappointed that there is no agreement today", commented European Taxation Commissioner Frits Bolkestein. Since 1 January, out of around one hundred exemptions proposed and applied in advance, 36 constitute infringements to Community legislation, since they did not have any legal base (Ed.: for the others, automatic renewal is foreseen if no decision is taken). "The Commission has shown itself to be flexible and has awaited 19 days. But it cannot allow the legal void to go on and has no other alternative than to use the instruments available to us", warned Mr Bolkestein. In other terms, it is preparing to open infringement proceedings against States concerned, to be abandoned if an agreement is reached in Council.
During lunch, the ministers took stock of the way discussions will begin with six third countries in the field of savings taxation (Switzerland, Andorra, Monaco, Saint Marin, Liechtenstein, United States). "The Presidency and the Commission have today sent a letter to these countries and decided to contact the new US administration", said Mr Ringholm. "The content of this letter is relatively brief. We tell these countries that we hope to have a discussion with them as soon as possible, explaining that this is in our common interest". Technical meetings should take place in February, first of all with the United States and Switzerland, followed by meetings at a more political level, between now and May. The Presidency also called on Member States concerned to deliver a report on the situation in their dependent and associated territories.
Go-ahead to Swedish convergence programme
Furthermore, the Ecofin Council gave its go-ahead to the updated convergence programme for Sweden for the period 2000-2003. However, regarding the rate of exchange, it recalls that Sweden "must demonstrate its ability to maintain an appropriate parity between the crown and the Euro for a sufficiently long time without high tension" and that it is waiting, with this in mind, for it to decide to enter the exchange rate mechanism 2 "in good time" (see EUROPE of 11 January, p.9).
Finally, the Fifteen held a general debate on the contribution of public finances to growth and employment, in preparation for a joint Commission and Council report intended for the European summit of Stockholm. They also noted the third report of the Economic and Social Committee on progress made in the comparability and quality of statistical data in the euro-zone, a report which, on the whole, takes a positive tone, said Commissioner Solbes.