The European Commission (EC) has been stung into action by Europe-wide unrest over fuel prices, drafting proposals for tax breaks lowering costs at the pumps. Unusually, EC president José Manuel Barroso is co-ordinating the move. He will submit detailed proposals to the EU summit in Brussels on Thursday and Friday (19-20 June).
These are likely to free member states from standard EU restrictions on state aid, allowing them to issue national subsidies to help those people hardest hit by
the fuel price rises. Hauliers might benefit from such "targeted support to those households experiencing the most serious impact". Such assistance would be temporary and would not prevent any long-term adjustments to higher prices.
The EC adds that it would table additional proposals later this year to further revise the Eurovignette and energy taxation directives. These reforms would provide tax and toll incentives for energy-efficiency investments, such as buying new fuel-efficient lorries or adopting eco-driving strategies.
Barroso says: "Rising fuel prices are squeezing the purchasing power of all EU citizens, with the strongest impact on the lowest-income families in Europe." He adds that any temporary assistance would need to be part of a longer-term strategy to protect transport and other fuel users from long-term oil price rises.
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