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WORLD> Europe
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EC outlines responses to rising oil prices
(Xinhua)
Updated: 2008-06-12 09:03 BRUSSELS -- The European Commission on Wednesday outlined policy responses to rising oil prices, calling for immediate support to the vulnerable and tax breaks to improve energy efficiency. At its weekly meeting, the EU executive blamed spiraling fuel costs on a major structural shift in oil supply and demand in the global economy, warning the prices are likely to remain high in the medium to long term. EU spokesman Johannes Laitenberger told a daily briefing that rising oil prices, together with more expensive food, is affecting the EU economy as a whole. According to the commission, the prices of liquid fuel for household purposes have risen by 35.2 percent and those of fuel for transport equipment by 12.7 percent on annual basis in April as opposed to the inflation rate of 3.6 percent. "Rising fuel prices are squeezing the purchasing power of all EU citizens, with the strongest impact on the lowest income families in Europe," said European Commission President Jose Manuel Barroso. In recent weeks, oil price surge has caused widespread protests among European fishermen and truck drivers, who demanded emergency support to the sectors heavily dependent on fuel. As a short-term response, the commission agreed that member states could provide targeted support when justified to those households experiencing the most serious impact. But it emphasized EU governments should ensure measures taken to alleviate the immediate impact of high oil prices are temporary, non-distorting and do not inhibit longer term adjustment to higher prices. |
