WRITTEN QUESTION E-3033/96 by Gerardo Fernández-Albor (PPE) to the Commission (11 November 1996)

Subject: Community-wide levying of eco-taxes

In view of the fact that 'green' taxes constitute an effective means for the attainment of environmental goals, and given that transport is the most important factor in climatic change, the head of the European Environmental Agency (EEA) has spoken out in favour of eco-taxes on fuel, roads, motorways, air transport and road transport.

In this connection, the advantages of exporting the Nordic countries' approach on eco-taxes to the rest of Europe is stressed. Set against this, however, are the fears in certain Member States concerning the impact of a general establishment of eco-taxes throughout the Community on the competitiveness of businesses.

Can the Commission say what the outcome of its actions in this regard has been and how it can ensure that eco-taxes form an important element in future common environmental policies and are given greater priority than opportunist considerations of competition or pressure from certain production sectors?

Answer given by Mrs Bjerregaard on behalf of the Commission (28 November 1996)

The Commission has taken note of the report to which the Honourable Member refers, which was produced by the European Environment Agency at Parliament's request. Broadly speaking, the Commission is in favour of environmental taxes and charges. The White Paper on Growth, Competitiveness and Employment of 1993 ((COM(93) 700. )) highlighted their crucial role in a European model of sustainable development. This idea is again taken up by the Commission in its proposal for a Decision on the review of the Fifth Action Programme in relation to the environment, on which the Council and Parliament have yet to state their position. ((COM(95) 647. ))

The European Council has asked the Council to produce a report on the development of taxation systems, taking account of the need to create a tax environment which will stimulate business and job creation and promote a more effective environmental policy. The Commission believes that such initiatives will allow policies to be clearly reaffirmed.

In addition, the Commission has already made a number of legislative proposals on tax which incorporate fully or in part environmental objectives or possibilities for tax differentiation, among other things, for instance in the field of energy, the environmental quality of fuel, vehicle emissions and charges for road transport. In most cases, however, the variety of environmental problems in the Community means that a fully harmonized approach to taxation is not required. Consequently, and without prejudice to any subsequent legislative initiatives, the Commission intends to present a Communication to the Council and Parliament before the end of the year which will provide guidelines for introducing environmental taxes at Member State level in accordance with Community law.

In all these areas the Commission has duly taken into account the need to maintain the overall competitiveness of the Community economy and to reduce adjustment problems resulting from a change in the comparative advantages affecting the various productive sectors. This concern is and will continue to be taken into account by the Commission, bearing in mind that potential sectoral adjustment problems exist regardless of whether the legislative instrument used is taxation or regulation.