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Image header Agence Europe
Europe Daily Bulletin No. 8926
Contents Publication in full By article 10 / 32
GENERAL NEWS / (eu) eu/ecofin

Council remains divided on additional funding for development aid

Luxembourg, 12/04/2005 (Agence Europe) - At the conclusion of their discussion on alternative funding for development aid (EUROPE 8925), few ministers supported the setting up of a (Tobin Tax) on currency deals. Some of the options reviewed in the Commission document appeared to divide the Council, as with the Kerosene tax, but the subject is still expected to be pursued leading up to the informal Ecofin Council in May. A possible rise in VAT and excise duties was not discussed at any length. So far Cyprus, Malta and Greece, as well as Spain and Portugal to a lesser extend, underlined their opposition to a tax on airlines through kerosene or plane tickets. Ireland supports them on this point and wanted to thrash out the possibilities of a tax on arms sales and Spain proposed, specifically, to tax luxury vehicles. The Netherlands and Scandinavian countries support a kerosene tax, as does Germany, if it does not cause a hike in ticket prices. France and the United Kingdom support a combination of different options. The British proposal on International Finance Facility (IFF) was warmly supported by Denmark, which thought that such a measure would not demand an agreement at an international level and which could be implemented by a group of donor countries.

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