Euronews | Sep 20, 2019 01:31
Germany expects tough negotiations on the introduction of new energy taxes in the European Union, a senior official said on Thursday, as the bloc considers higher prices for carbon emissions as a way to achieve its climate protection targets.
Over the last decade, EU countries have led a global shift towards renewable energy and set up the world's largest emissions trading system to price carbon and reduce reliance on more polluting fuels. The bloc's rules on energy taxation have not changed for more than 15 years, however.
Speaking at a panel discussion in Berlin, Deputy Finance Minister Joerg Kukies said recent talks in Helsinki about modernizing the tax rules had revealed deep divisions among EU member states.
"The Polish finance minister announced an absolute veto against any additional taxation of coal," Kukies said.
"The Maltese finance minister pointed out that the idea of higher taxes for flights would be against the interests of any island country such as his country."
And the Cypriot finance minister threatened to block any attempts to introduce additional taxation on shipping, he said.
In the EU, tax matters have to be decided in unanimity.
"The question that I have now, and this really goes to the core: must the EU - in light of the stalemate of tax harmonization - give up its unanimity principle in tax policy, at least in some areas," Kukies said.
He acknowledged that such a move was sensitive. Clemens Fuest, president of the Ifo Institute and member of the finance ministry's advisory council, cautioned against such a step.
"I see the risk, that if we go for qualified majorities too often, we may also scare off more countries," Fuest said. "I think it's not bad that in the EU we also have to take into consideration the interests of the smaller ones."
French Finance Minister Bruno Le Maire said in Helsinki that he wanted the EU aviation sector, which benefits from tax exemptions and other waivers to compete with non-EU airlines, to contribute more to fight climate change.
On Thursday, German finance minister Olaf Scholz said drastic steps were needed to counter climate change and urged an international approach on the matter.
(Reporting by Michael Nienaber; Editing by Sonya Hepinstall)
Written By: Euronews
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.