BRUSSELS The European Commission has asked four EU countries to say exactly what aid they are giving to help their industries cope with high fuel prices to see if they are breaking EU law, a spokesman said on Wednesday. "Under the state aid rules the commission has written to Belgium, France, Italy and the Netherlands to ask them for information about the content of any aid they may have given over the past few days in the transport sector," commission spokesman Gilles Gantelet told a press briefing.
"The deadline (for replies) is one month -- once we have received the information we can see whether or not it is compatible with state aid (rules)," Gantelet said. Following street protests that brought many parts of Europe to a standstill, a number of governments used a variety of measures, mostly aimed at reducing fuel tax for industries such as road haulage, farming and fishing, to ease the impact of spiralling oil costs. The commission, the European Union's executive body, has already warned the bloc's 15 national governments that it would take legal action against countries breaking strict EU rules on state aid.
The head of Transport and Energy Policy at the commission, Loyola de Palacio said on Tuesday she had "serious doubts" about some of the measures taken by national governments. "If these measures are infringing community (EU) law, we will have to launch procedures," she told a European Parliament committee. Gantelet said the commission stood by its proposal to set minimum levels of tax that each EU government would have to apply on a wide range of energy products, which some have dubbed an "ECO-tax". The proposal has failed to get the unanimous backing of EU governments which would be required to make it law.
"The ECO-tax proposal is still on the table," Gantelet said.
"But you have to look at the political advisability, whether or not it should be adopted over the next few weeks. But that does not call into question the fundamental principle." (Reuter)