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Soaring oil prices fuel division at EU summit

(Xinhua)
Updated: 2008-06-21 15:01

As a compromise, the European Commission was invited to conduct a study together with France, which is due to take over the six-month rotating EU presidency in July, on all proposed fiscal measures to deal with soaring oil prices.

A report was expected before the next EU summit in October.

"I will not give way. I will fight for the issue," a defiant Sarkozy said.

While leaving it open for member states to adopt short-term measures, including a cut in excise duties on fuel, European Commission President Jose Manuel Barroso insisted the ultimate answer to soaring oil prices exists in long-term adjustment.

"We have sent out a very clear message that there will not be a quick fix for the issue of the oil prices," he said at a press conference after the summit.

"There is a structural problem that needs a structural response, and we need structural change," he added.

Barroso urged member states to swiftly adopt the climate change and energy package proposed by the Commission early this year.

The package set the goal to reduce the EU's overall greenhouse gas emissions by 20 percent below 1990 levels by 2020, and make renewable energy account for 20 percent of total energy use and biofuels make up 10 percent of fuel consumption, aiming to improve substantially energy efficiency and the diversification of the EU energy supply.

Adopting Barroso's line, EU leaders agreed in the summit's official concluding document that they would support investment in energy efficiency and the use of renewable energy resources.

"Further efforts to increase energy efficiency and energy savings and diversify the EU energy supply are essential. In particular, new technologies, have an important role to play in that respect," they said.

Among other measures, EU leaders called for efforts to promote competition in energy markets and increase the transparency of oil markets, including that involving oil stocks.

They said dialogue with oil and gas companies, producing countries and importing developing countries should be enhanced.

Barroso said the European Commission was ready to propose a revision of the current EU system of energy taxes and present its views on a British proposal to reduce VAT on energy-efficient products in autumn.

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