The EU should fill its post-Brexit budget gap with new revenues from taxing transport, which is Europe’s biggest emitter of greenhouse gases, former Italian prime minister Enrico Letta, ex-WTO head Pascal Lamy, former finance minister of Germany Hans Eichel and 14 other economists have told EU leaders. In advocating a green tax shift, they called for a higher minimum tax on road diesel, VAT on airline tickets for the first time and taxing aviation kerosene which is currently exempt. Sustainable transport group Transport & Environment welcomed the letter, citing its own analysis that such a green tax shift would generate additional revenues of more than €50 billion a year which would allow for the income tax burden to be reduced.
The overall direction for road transport in today’s leaked draft of the European Commission strategy for low-emission mobility has been welcomed by Transport & Environment (T&E), though the sustainable transport group has urged stronger action on greenhouse gases from international aviation and shipping.
Transport & Environment's reaction to the Parliament hearing for Commissioner-designate for Climate Action and Energy, Miguel Arias Cañete.
Despite three-hours of grilling by MEPs of the Commissioner-designate for Climate Action and Energy, Miguel Arias Cañete failed to explain how there is no conflict of interest with his brother-in-law Miguel Domecq Solís being a director of two oil companies.