EU Recommends Tax Breaks For Cleaner Diesel Cars
Date: 14-Jan-05
Country: BELGIUM
Author: Lisa Jucca
The European Union's executive is recommending tax breaks for diesel cars generating a maximum of 5 milligrams per kilometre of particle emissions, representing an 80 percent reduction from the current emission limit of 25 milligrams.
The proposal aims to promote stricter environmental requirements without chocking off an industry that faces tough competition from less regulated non-EU players in Japan, South Korea and the United States.
"I don't believe the future of the EU automotive industry lies in a race to the bottom concerning price and safety," Industry Commissioner Verheugen told a news briefing, which also launched an experts group charged with improving car regulation.
"Lean, clean and safe. That is the way forward."
A number of EU states, including Germany, the Netherlands, Austria and Sweden, have already indicated they favour offering fiscal incentives for cleaner cars, to reduce health risks posed by emissions of small particles.
The Commission is expected to propose reducing the particle emission limit to five milligrams per kilometre later this year. But the new limit requires the introduction of costly filters and will not come into force until 2010.
Verheugen, who is also in charge of shaping a plan to improve the bloc's Lisbon strategy on competitiveness, said he would propose new EU legislation only after submitting the rules to a strict "competitiveness test".
The test, part of a Commission's drive to take greater account of global challenges, would have to prove that the rules do not hurt the bloc's economy vis-a-vis competitors.
He said he would present a proposal to revive the Lisbon strategy on February 2.
