French fuel VAT plan should be debated: eurozone chairman

0 Comments | AFP, May, 2008

LUXEMBOURG (AFP) — The chairman of the Eurogroup of finance ministers Jean-Claude Juncker said Friday that a French plan to cut value added tax on oil to help ease fuel prices was not "preposterous" and should be debated.

"To think about a political reaction to the rise in and volatility of oil products is not a preposterous idea but is one well worth thinking about," said Juncker, whose is also Luxembourg's prime minister and finance minister.

With oil prices close to all-time highs, fishermen and truckers have led waves of protests against record fuel prices, raising pressure on EU governments to react urgently.

Facing blockades of French ports by striking fishermen, French President Nicolas Sarkozy suggested on Tuesday that value added tax on fuel could...