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Germany subsidises early move to Euro-5
Page 16
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German hauliers will receive government subsidies if they upgrade to Euro-5 before it becomes compulsory in 2009. David Haworth reports.
[HE GERMAN government s developing a compensation mckage with its national road taulage industry as the European 2ommission (EC) prepares to ipply the stricter Euro-5 emission imits from 2009.
Berlin has drafted several )roposals to compensate road ransport operators, two of which tave already won EC approval as ['towable subsidies under its isually strict state aid rules.
An EC official says: "Each EU nember can go ahead with their upport measures," as long as they void subsidies that would give one national transport sector an unfair advantage over another.
One approved measure is a planned reduction in annual taxes for vehicles which are already subject to Germany's 'mut' road tolls. This programme could be worth as much as €50m (£34m).
Also touted is an innovation programme which would subsidise operators that buy vehicles meeting Euro-5 between now and its compulsory introduction in 2009.
A German government official has estimated this measure could be worth €100m (£68m).
Under such a scheme, large vehicle manufacturers would receive a 30% subsidy to meet the extra cost; small/medium-sized producers would be eligible for a 50% subsidy: while plants situated in former East German territory, the republic's most economically backward area, would be entitled to a subsidy of 50%. In all cases the financing would be available for six years.
The EU's executive rejected Berlin's alternative suggestion of a fuel duty rebate.
Germany also plans to increase the maut rates,generating an additional €600m (£410m) a year.