Brussels, 14/02/2002 (Agence Europe) - As requested by Germany, the European Commission has authorised the extension of several part exemptions form the Germany Ecotax on electricity and mineral oils. The ecological tax reform in Germany introduced in 1999 a tax on the consumption of electricity and increase the tax on mineral oil and this tax reform was continued in 2000. Tax rates are being increased in four stages over a four year period, including a rise at the beginning of 2003. In order not to jeopardise the competitiveness of energy intensive industries, Germany applies several tax reductions which confer an advantage to the areas concerned and therefore have to be assessed under the EU's state aid rules. The exemptions were authorised in February 2000 and run out on 30 March, but Germany has requested an extension (see EUROPE of 29 November 2001, p.14). The Commission adopted the following measures 1) an 80% tax reduction for ten years applied to the increase of the mineral oil tax for heating for manufacturing, agriculture, forestry and fishing; 2) a reduced tax rate of 20% of the electricity tax for the same sectors for ten years; 3) a tax cap for the most energy intensive users until 2005; favourable tax treatment of Combined Heat and Power installations in terms of their input fuels (oil and gas) for ten years; 5) a 50% tax cut in the electricity tax for rail operators for ten years; and 6) a 50% cut in the mineral oil tax increase for local public transport for ten years. Commissioner Monti said that these measures "provide Member States with a range of possibilities to devise measures which relieve companies from some of the burden of extra taxes without compromising the fundamental objective of environmental protection which is the very reason for allowing this kind of aid".