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

Recommended

You probably heard about Ford’s CEO Mark Fields’ departure from the company. Fields has spent almost three years with the company, and now, he is going to be replaced by...
by - May 28, 2017
A racing team is claiming that it has managed to break the lap record in its category in the ever-demanding Nurburgring circuit in 2016 while driving a road-going Volvo S60...
by - May 27, 2017
Aside from the officially confirmed BMW 8 Series, the next generation BMW M5 (F90) is getting a lot of attention from the fans, enthusiasts and even potential customers around the...
by - May 27, 2017
Automobili Lamborghini’s preparations for the production of its first ever sports utility vehicle, the new Lamborghini Urus, has reached new grounds as the Italian carmaker is disclosing plans to construct...
by - May 26, 2017
The upscale version of the GMC Yukon body-on-frame sport utility vehicle – the GMC Yukon Denali – has been refreshed for the 2018 model year. It now sports a new...
by - May 26, 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