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French fishers keep blocking ports and fuel depots in protest against high diesel costs (Photo: EUobserver)

Commission cool on Sarkozy fuel tax cap proposal

The EU has given a cool reception to an idea raised on Tuesday (27 May) by French President Nicolas Sarkozy for an EU-wide capping of the value added tax (VAT) on fuel as a way to tackle surging oil prices.

"If [the price of] oil continues to rise, should we not suspend the VAT tax part of oil prices?" Mr Sarkozy told French radio RTL.

"I cannot decide this on my own, as it is a decision which should be a European one, but I can imagine that France is not the only country confront...

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French fishers keep blocking ports and fuel depots in protest against high diesel costs (Photo: EUobserver)

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