(2004/C 88 E/0139)

WRITTEN QUESTION E-3143/03

by Stavros Xarchakos (PPE-DE) to the Commission

(23 October 2003)

Subject:   Automobile prices in Greece and ban on diesel motors in Athens and Thessaloniki

Recently (a few months prior to the Greek elections) the Greek Government has announced tax cuts affecting the market in new automobiles.

It is expected that the resulting price reductions will mainly affect automobiles with large engines (exceeding 2 000 cubic centimetres) which will nevertheless remain more expensive than equivalent models in other countries in the European Union.

Regarding vehicles in the 1800-2000 cubic centimetre bracket (including vehicles with features offering high standards of active and passive safety) the reduction will be much less, which means that such automobiles will still be extremely expensive for Greek consumers whose salaries are, moreover, the lowest within the European Union with annual per capita income amounting to only 69 % of the Community average (Eurostat 2000)

During deliberations in the European Parliament's Committee on the Environment, repeated reference was made to the low pollutant levels of emissions from modern diesel motors, and the fact that in terms of horsepower they are comparable (thanks to the widespread use of hypercompressors) with petrol motors. It is also recognised that emissions from damaged catalytic converters (used in unleaded petrol motors) are exceptionally dangerous to human health. At the same time, diesel-driven automobiles are banned from Athens and Thessaloniki. All this is resulting in high levels of atmospheric pollution (particularly in Athens which numbers over two million vehicles), while Greek consumers are being penalised still further since, on the one hand, unleaded petrol is more expensive than diesel and, on the other hand, petrol motors consume more fuel than diesel motors.

What representations will the Commission make to the Greek authorities with a view to securing tax (and hence retail price) reductions for automobiles in the 1 800-2 000 cc category which (for price reasons) are of the greatest interest to Greek consumers? Is it rational and consistent in environmental terms to ban diesel motors from the two largest Greek cities? What steps has the Commission taken to date regarding these two problems and what has been the response of the Greek authorities?

Answer given by Mr Bolkestein on behalf of the Commission

(17 December 2003)

The Commission would like to inform the Honourable Member that, with the exception of common rules applying to annual taxes and charges for heavy goods vehicles, there is little Community legislation, or harmonisation of national fiscal provisions, applied by the Member States in the area of passenger cars taxation. Therefore, it is for individual Member States to lay down national provisions for the taxation of these cars, which have to be in line with the general principles of the EC Treaty and in particular not to give rise to border-crossing formalities in trade between Member States and to respect the non-discrimination principle.

The Commission is aware of considerable registration tax differences in Member States still applying registration tax. In a Communication on: ‘Taxation of passenger cars in the European Union’ (1), presented in September 2002, the Commission suggested that Member States abolish or substantially reduce registration tax over a transitional period of five to ten years. The Communication also included policy measures establishing a more direct relation between taxation levels and carbon dioxide (C02) emissions from new passenger cars. The Parliament adopted a favourable opinion on this Communication during its Plenary Session of 5/6 November 2003.

The Commission draws attention to the fact that any initiative the Commission might take, in the light of the outcome of this discussion within the Council and the Parliament, targeting the approximation of taxation of passenger cars, has to receive the unanimous agreement of Member States at the Council.

Concerning the ban on diesel cars in the two largest Greek cities, the Commission would like to recall that in assessing the environmental impact of diesel cars, a distinction should be made between ambient air pollution and climate change issues. If compared with petrol cars, modern diesel cars allow a reduction in CO2 emissions, which is a key issue in addressing climate change. On the other hand, however, the emissions of diesel cars are significantly higher as regards the pollutants that adversely affect ambient air quality, such as particulate matter and nitrogen oxides. The concentration of such pollutants in ambient air is regulated by Council Directive 1999/30/EC of 22 April 1999 relating to limit values for sulphur dioxide, nitrogen dioxide and oxides of nitrogen, particulate matter and lead in ambient air (2), which lays down limit values and margins of tolerance. According to the reports submitted to the Commission under the air quality framework Directive, limit values and margins of tolerance are still exceeded in the Attica Region, and this makes it necessary to adopt or maintain measures addressing specific sources of pollution, provided that such measures are compatible with the EC Treaty.

For further details on ambient air pollution in Greece, the Honourable Member may wish to refer to the reply given by the Commission to Written Question E-3217/03 by Mr Antonios Trakatellis (3).

(1)  COM(2002) 431 final.

(2)  OJ L 163, 29.6.1999.

(3)  OJ C 78 E, 27.3.2004, p. 791.