France moves to freeze plans for environmental tax on airlines


© Reuters. Coronavirus disease (COVID-19) outbreak in Paris

PARIS (Reuters) – France is preparing to put plans for new environmental taxes on the airline sector on hold, officials said on Friday, despite a government push to speed up moves towards a greener economy.

Before the coronavirus crisis brought air traffic to a standstill and many airlines to their knees, the sector had been fighting a losing battle against emissions taxes in Europe.

New taxes on air travel were among proposals from a Citizens’ Climate Council in response to the “yellow vest” movement, which began as a protest at the cost of living and became a rebellion against President Emmanuel Macron himself.

Macron has said that he would take on most of the council’s 150 proposals, and the taxes were not among those he has said would be excluded.

After suffering losses to green candidates in June’s municipal elections, Macron sought to enhance his environmental credentials, but not at the expense of economic activity.

“When a sector has its head under the water, you don’t push its head in deeper,” government spokesman Gabriel Attal told Europe 1 radio, echoing comments by the finance minister.

Bruno Le Maire said on Thursday that it would be “completely grotesque” to hit aviation with new taxes at a time when the state is pumping 18 billion euros into the sector through various forms of aid to keep it afloat.

But this could become a source of tension with Macron’s new Environment Minister Barbara Pompili, an environmentalist brought into government in July.

An official in Pompili’s office said that discussions were still under way among ministers and that she would not take a position until they were done.

READ  Vivendi set to widen legal battle against Mediaset beyond Italy-sources

Even if the taxes make it to parliament, they would likely end up being defeated there, one lawmaker told Reuters.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





READ SOURCE

LEAVE A REPLY

Please enter your comment!
Please enter your name here