WRITTEN QUESTION E-3515/00

by Werner Langen (PPE-DE) to the Commission

(13 November 2000)

Subject: Emergency measures to offset the additional burden of increased energy costs

France, Belgium and the Netherlands have taken emergency measures to offset the huge additional burden imposed by increased energy costs.

The Commission is therefore asked to answer the following questions:

1. What specific form do these emergency measures take?

2. Are the measures that have been adopted compatible with the EC Treaty or do they contravene European competition law?

3. Does it plan to intervene?

Answer given by Ms de Palacio on behalf of the Commission

(9 January 2001)

Like Belgium, France and the Netherlands, Spain, Italy and the United Kingdom have adopted or are planning to adopt emergency measures to offset the additional burden of increased energy costs.

According to the information currently available to the Commission, the measures for the road transport sector are as follows:

(a) France has provided for a reduction in the form of a special reimbursement in the domestic duty on petroleum products (TIPP) for road haulage vehicles of over 7,5 tonnes and passenger transport vehicles which have more than 9 seats, from 1 January 2000 to 31 December 2001. From 2002, the French Government will fully reimburse annual TIPP increases, amounting to around + FRF 0,07 (approximately 0,01) per litre of gas oil. From 2001 France also plans to repay to road haulage operators the extra VAT collected by the State since oil prices increased. In addition, in a letter dated 17 October 2000 France requested the extension of all reduced rates of excise duty or exemptions from excise duty mentioned in Council Decision 1999/880/EC(1).

(b) The Netherlands will grant all road transport operators a further reduction in the excise duty on diesel used by commercial vehicles, from 1 January 2000 until 31 December 2000, also in the form of a special reimbursement. With regard to Council Decision 1999/880/EC(3), the Netherlands have requested the extension of the reduced rates of duty on diesel until 31 December 2002 and the differential rates of excise duty on liquid petroleum gas (LPG) used as fuel for buses and coaches until 31 December 2005. From 1 January 2001 the Dutch Government will also lower the rate of excise duty on diesel with a low sulphur content, reducing its price at the pump.

(c) In September 2000 Italy adopted a Decree-Law which, from 1 September 2000 until 31 December 2000, provides for a further reduction in the rate of excise duty on diesel for road haulage operators with vehicles over 3,5 tonnes, public companies running local transport operations and taxis. With regard to Council Decision 2000/446/EC(2), Italy has also requested the extension of the reduced rate of excise duty on diesel used by road transport operators until 31 December 2002.

(d) For certain types of heavy goods vehicle Belgium has arranged for road tax to be paid at the end of a given period, no longer in advance, changed the annual tax on insurance contracts and abolished the general fee for vehicle registration and re-registration.

(e) In October 2000 Spain adopted a Decree-Law introducing emergency measures in the agriculture, fisheries and transport sectors. For the latter, provision is made for aid in the form of tax reductions for investments in satellite navigation and location systems and equipment to facilitate the access of disabled persons to road transport vehicles, and for retirement incentives for people aged between 60 and 65 working in the transport sector. In addition, aid for the purchase of less polluting and safer vehicles is being considered.

(f) According to the information available, the United Kingdom plans to introduce, in its 2001 budget, a reduced rate of excise duty on diesel with a low sulphur content, tax reductions for the least polluting alternative fuels, the modulation of road tax according to vehicle CO2 emissions, and temporary reimbursement of road tax for heavy goods vehicles. For the period 2001-2004 the British Government plans to set up a fund to promote innovation, modernisation and reduction of the environmental impact of the road haulage system.

Although the Commission recently submitted to the Council for approval a proposal extending some of the abovementioned derogations, including those concerning the excise duty on fuel, the proposal's provisions are without prejudice to the application of Article 87 of the EC Treaty. Therefore, to prevent any distortion of intra-Community competition, the

Commission is also carefully examining each dossier in the light of the European rules on state aid. The procedure provided for in Article 88 of the Treaty might be initiated for some of these measures.

(1) Council Decision of 17.12.1999 authorising Member States to apply and to continue to apply to certain mineral oils, when used for specific purposes, existing reduced rates of excise duty or exemptions from excise duty, OJ L 331, 23.12.1999.

(2) Council Decision of 17.07.2000 authorising Italy to apply reductions in excise duties on certain mineral oils used for specific purposes, OJ L 180, 19.7.2000.

(3) Council Decision of 17.12.1999 authorising Member States to apply and to continue to apply to certain mineral oils, when used for specific purposes, existing reduced rates of excise duty or exemptions from excise duty, OJ L 331, 23.12.1999.