Sarkozy drops carbon tax after election defeat

“French President Nicolas Sarkozy is scrapping a planned tax on carbon emissions, three days after the ruling party was defeated in local elections.

Prime Minister Francois Fillon told members of parliament of the Union for a Popular Movement that any carbon tax should be imposed throughout the European Union to be effective.

“The idea is that this carbon tax should be European or not happen at all,” Jean-Francois Cope, the head of the UMP’s parliamentary group, told reporters after the meeting. “It will be a fight at the European level.”

An earlier planned carbon tax was rejected last December by France’s constitutional court, which ruled that it penalized households too heavily and excluded many industrial polluters. France’s Medef business lobby had campaigned against the levy.

In regional elections last weekend, Sarkozy’s UMP kept control of only one out of 22 regional councils in mainland France.

The EU already imposes carbon-dioxide emission quotas on the region’s largest utilities and factories, and requires those exceeding their limits to buy credits.”  “France to Scrap Carbon Tax, Wants an EU-Wide Levy, Fillon Says

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