Commission does have the right to impose CO2 penalties on car makers say lawyers
Wed 16 April 2008
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The European Commission is within its rights to levy financial penalties on car makers who fail to meet proposed CO2 emission standards according to the Commission's lawyers. Meanwhile, there are reports of Franco-German discussions involving the final form of the car CO2 regulations and hints of possible concessions to Germany's car makers.
The financial penalties proposed by the Commission to enforce the new car CO2 emissions regulations are deemed "administrative penalties" and are similar to those established under the EU's emission trading scheme. In a confidential document seen by ENDS, the European Parliament's legal advisors say the planned fines can not be regarded as fiscal measures and therefore are not a matter for national governments as had been suggested by the German MEP, Klaus-Heiner Lehne, who had made the original legal challenge.
Meanwhile, the FT reports that France and Germany are seeking to strengthen co-operation in four sensitive policy areas including the negotiations about the final form of the EC CO2 regulation for cars. The issue has become a hot topic between the two countries as car makers in Germany - such as Porsche, BMW and Audi - have traditionally produced larger cars than those made in France and fear being hardest hit by the regulations.
In a related development reported by the EU Observer, the EU's Environment Commissioner, Stavros Dimas has reportedly indicated that he is willing to ease pollution-reducing targets for German car manufacturers providing the overall emissions target across Europe is maintained.
Mr Dimas told a German daily newspaper that he would be willing to accept that large car and small car manufacturers contribute differently to the overall CO2 target. He said finding a compromise on the issue "is up to member states" opening the door to national capitals to barter on the matter, provided the target is reached.
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