Germany doesn’t like EU green plan to raise price of diesel

Article by Christian A., on April 14, 2011

The European Union executive’s plan to tax high-energy fuels, which could increase the price of diesel, has placed Brussels at odds with Germany, the biggest vehicle producer in the continent. The blueprint proposes to increase the minimum levy on diesel in line with gasoline, making motor fuel taxes more eco-friendly.

The proposal could become EU law by 2013. However, through this initiative, Germany would have to raise its tax on diesel to 75 cents per liter by 2020 from 47 cents. Such tax increase would contradict with Berlin’s financial support for the diesel.

Approximately 50 percent of the new cars registered in Europe utilizes diesel, and such scenario has benefited many German automakers like Daimler and BMW. Chancellor Angela Merkel of Germany has expressed opposition to the Brussels initiative even if it would be staged in over ten years.

On the other hand, the European Commissioner Algirdas Semeta, who is in charge of taxation, said that the common goal is to have an EU economy that is greener, more resource-efficient and more competitive, and that the initiative sets a strong CO2 price signal for consumers and businesses.

The EU aims to cut by fifth its carbon dioxide emissions over the next 10 years to minimize climate change.

However, the current tax system on energy consumption across Europe weakens such aim, as coal, which is the biggest polluter, has the lowest levies, while bioethanol, which is one of the least carbon-intensive, has the highest burden. Countries across Europe vary in the way they tax energy.

Topics: germany, europe, diesel

If you liked the article, share on:

Comments

Login or Create new account to add a comment!

Recommended

Just recently, it was speculated that a new Porsche Cayman GT4 RS is coming. There is no official confirmation yet from the German sports car maker, but the arrival of...
by - February 18, 2017
Will there be a BMW M4 CS? Apparently, there is a Club Sport version of the BMWM4 after it was sighted in California doing a shoot for a new commercial...
by - February 18, 2017
Having a 400 hp and 470 lb-ft of torque is a tremendous advantage. Yet Ford hasn’t formally announced the numbers regarding its latest Ford Expedition. The current SUV as we...
by - February 17, 2017
Aston Martin and Red Bull’s AM-RB 001 hypercar project is moving along quickly. This time, the project partners have already commissioned a number of technical partners that would help in...
by - February 17, 2017
This is what happens when a guy thinks fast forward into the future. Never mind if autonomous driving is just lurking around the corner. Volkswagen, Chevrolet, Audi and Ford are...
by - February 17, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries