WRITTEN QUESTION E-2916/01 by Pere Esteve (ELDR) to the Commission. Introduction of a tax on kerosene.
Date: 2001-10-17
Institutions: European Parliament, Provisional data
Subjects: Balearic Islands, air transport, airline, common transport policy, environmental protection, fuel tax, island region, peripheral region, services of general interest

C 205 E/12

Official Journal of the European Communities

EN

29.8.2002

1. What action will the Commission take to stop German manufacturers of lawnmowers being placed
at a disadvantage?

2. What is the Commission’s position on the above situation?

Answer given by Mr Bolkestein on behalf of the Commission

(18 February 2002)

The Commission manages at present 64 autonomous tariff quotas and 980 autonomous tariff suspensions.
These quotas and suspensions had been opened by Council Regulations based on proposals from the
Commission in accordance with Article 26 (ex Article 28) of
the EC Treaty and the Commission
Communication concerning autonomous tariff suspensions and quotas (1). The Commission Communi-
cation sets out principles which Commission normally respects when preparing a proposal for the opening
of an autonomous tariff suspension or quota.

1.
In April 2001 one Member State lodged an opposition against the renewal of the autonomous tariff
quota No 09.2976 for four-stroke petrol engines of a cylinder capacity (cc) not exceeding 250 cc for use
the product concerned in the
in the manufacture of
In
Community suffered severe economic difficulties from the duty free import of similar products.
weighing the arguments and evidence presented by interested Member States for and against the renewal
of the tariff quota the Commission considered it not to be in the interest of the Community to renew the
tariff quota No 09.2976.

the producer of

It argued that

lawnmowers.

Therefore,
considered it inappropriate to propose to the Council to renew the tariff quota No 09.2976 for 2002.

in accordance with principles set out in the Commission communication the Commission

The Commission considers that the application of Common Customs Tariff duties are the normal
2.
course of action when products are imported in the Community. Any relief
from these duties by
autonomous tariff quotas and suspensions shall be the exception to this rule. These exceptions shall
therefore be limited to those cases where the loss of own resources for the Community and the increase of
competition from imports for the Community industry is clearly outweighted by a possible stimulation of
the economic activity within the Community, the improvement of the competitive capacity of the
enterprise using imported goods and,
the latter to create employment,
modernise their structures, etc. As the information available to the Commission did not allow to conclude
that these positive effects had been achieved since the first opening of this quota in the year 2000 the
Commission considered it appropriate to restore the competitive situation for the enterprises using the
Community products in relation to the companies using the imported products as it existed before the
introduction of this measure.

the ability of

in particular,

However, the Commission intends to review its assessments of the situation in the first quarter of the year
2002.

(1) OJ C 128, 25.4.1998.

(2002/C 205 E/012)

WRITTEN QUESTION E-2916/01

by Pere Esteve (ELDR) to the Commission

(17 October 2001)

Subject: Introduction of a tax on kerosene

One of the objectives set out in the white paper on transport adopted by the Commission is to banish
polluting aircraft from the EU’s airspace.

29.8.2002

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Official Journal of the European Communities

C 205 E/13

One of the measures being considered by the Commission is the introduction of a tax on kerosene, which
is the main fuel used by aircraft. This would give airlines an incentive to update their fleet in order to
reduce CO2 emissions.

This Commission initiative aimed at moving towards a more environment-friendly transport model in the
EU is to be welcomed.

However, in the case of the Balearic Islands air transport is today a necessity. Alternative transport modes
can have only a limited scope: land transport is impossible, while sea transport is restricted in frequency
and can only link the islands with the mainland Spanish ports of Denia, Valencia and Barcelona.

In addition, were the kerosene tax to be applied extensively it could come into conflict with the special
regime applying to the Balearic Islands, with its measures to reduce the additional costs of island status for
both passenger and goods transport.

Is the Commission aware of the undesired effects which could arise from the introduction of this tax

1.
in regions such as the Balearic Islands where there are no alternatives to air transport?

2.

Does the Commission intend to adopt specific measures to cover cases such as this?

Answer given by Mrs de Palacio on behalf of the Commission

(6 March 2002)

The white paper ‘European transport policy for 2010: time to decide’ (1) addresses the issues of
1.
aviation fuel tax. It notes that the Ecofin Council has already approved a recommendation that the Member
States should work together more closely within the International Civil Aviation Organisation with a view
to introducing an aviation fuel tax and other instruments with similar effect. The white paper also
recognises that an aviation fuel tax must be non-discriminatory with respect to nationality or status of
carrier and within Europe that would mean application to all,
including non-Community carriers,
operating intra-Community flights. This would mean that all fuel would be taxed at the same rate
regardless of region or service.

If there were no agreement at international level, and the Community wished to introduce an aviation fuel
tax, the white paper suggests that another option might be to tax only those flights where an alternative
mode of transport, such as high speed rail, was available ? such a system is already applied in Sweden.
Such a system would imply that there would be no taxes for flights to and from regions where there are
no competing alternative transport modes.

However, if a universal tax were to be introduced, the Spanish authorities could, if they wished, counter-
balance the negative effects of the tax for the inhabitants of the Balearic Islands imposing a public service
obligation in accordance with Article 4 of Council Regulation (EEC) No 2408/92 of 23 July 1992 on
access for Community air carriers to intra-Community air routes (2). Alternatively,
for transport of
passengers only, they could decide that the services have a social character and provide aid, directly to the
passengers, provided that the provisions of the EC Treaty, Article 87.2.a. (ex Article 92) were respected (in
particular the condition of non-discrimination among service providers).

2.
The Commission is also looking at a range of other market based and technical measures to reduce
emissions from aviation and will ensure that the interests of remote regions is kept in mind when making
proposals on this work.

(1) COM(2001) 370 final.
(2) OJ L 240, 24.8.1992.