UK refuses to harmonise taxes
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European Commission plans to force the harmonisation of petrol and diesel taxes across the European Union received a set-back this weekend.
Britain refused to back the move at an informal EU heads-of-government summit in Biarritz, France, fearing that it could force a cut in British duty.
The harmonisation plan, launched in response to the fuel-price crisis, will still be debated by the council of EU finance ministers, but because EU tax Initiatives require unanimity among member states it is not likely to become law.
The summit also agreed to close ranks on future fuel protests, agreeing not to slash fuel duties unilaterally in attempts to appease angry hauliers, farmers and fishermen.
A spokesman for the current French presidency of the EU says: "The meeting agreed that the EU should keep a common approach to taxation and agreed not to take decisions that would be divergent."
• Better news for the road transport industry came with a pledge by prime ministers and presidents to support the spending of EU money to boost pipeline and oil tanker links with Russia, enabling western Europe to draw on an alternative fuel supply to the Middle East and so offset OPEC price rises,