Oviedo/Brussels, 16/04/2002 (Agence Europe) - Permanent representatives form Member States are expected to confirm on Tuesday, an extension to the derogations on tax reductions for lorry drivers in France, Italy and the Netherlands, which were introduced during the crisis at the end of 2000. President of the Council, Rodrigo Rato indicated at the end of the informal ECOFIN meeting in Oviedo on Saturday, that there was an agreement that had to be technically fine-tuned in order to extend the derogation until the end of the year for France, Italy and, for the Netherlands, until October. Germany and Austria are still expected to confirm their support for this agreement. Discussions were continuing in Brussels on Tuesday between the Presidency, Austria and Germany on one side and France, Italy and the Netherlands on the other. The Council has until 5 May to adopt a formal decision.
While the Commission was preparing to make a negative decision in February against State Aid, the three countries involved asked for Article 88.2 of the Treaty to be applied, which allows the Council to decide by unanimity whether a State Aid is compatible with the common market (see EUROPE 6 February page 10). The Council has three months to make a decision, if this is not forthcoming, the Commission will revert to its procedures. If the agreement of the Council is confirmed, Article 88.2 will be used for the first time on questions involving excise duties. Hitherto, it has been used essentially for agricultural issues.
The European Commission is preparing to frame this fiscal aid within the road haulage sector, in order to put an end to what it considers as competitive distortions. In a directive that is expected to be presented before the summer, the Commission is due to harmonise the level of excise rebates on road fuel granted to professional drivers in Member States.
In its White Paper on transport policy up until 2010, the Commission announced its intention to set up a harmonised Community excise duty on professional use of diesel, which would be higher than the current average tax on diesel. This approach is expected to reduce competitive distortions, whilst bringing excise duties on diesel and other less polluting fuels closer together. Directives 92/81 and 92/82 on excise on mineral oils currently foresees a EUR 330 rate per 1000 litres of petrol and EUR 245 on diesel. The White Paper makes clear that excise duties on diesel are generally EUR 140 (per 1000 litres) higher than that on led-free petrol.