Brussels, 17/01/2005 (Agence Europe) - On Friday, the European Commission's Directorate-General for Enterprise and Industry issued a staff working paper that paves the way for Member States to provide tax incentives for diesel cars with particle emission limits beneath those required by law. The paper recommends setting the tax incentives limit at 5 mg/km of particulate matter, a reduction of 80% on the 25 mg/km limit that became mandatory from January 2005 under the 'Euro 4' rules. This initiative will encourage Member States to propose incentives to reduce emissions in a coherent way throughout the EU, thereby preserving the single market and ensuring the free circulation of goods. the second half of 2005 will see a formal proposal for the next stage of emission limits (known as 'Euro 5') to come into force in 2010. The Commission 'Staff Working Paper on Fiscal Incentives in Advance of Euro 5' can be downloaded from
http: //europea.eu.int/Commission/enterprise/automotive/pagesbackground/pollutant_emission/sec_2005_43.pdf.