Financial Times FT.com

Berlin pressed to restore fuel tax break

By Bertrand Benoit in Berlin

Published: June 26 2008 03:00 | Last updated: June 26 2008 03:00

Germany might reintroduce a €5bn-a-year (£4bn, $7.8bn) tax break for commuters to shield consumers from rising petrol prices.

Senior officials from the Christian Democratic Union led by Angela Merkel, the chancellor, told the Financial Times the pressure to bring back a tax subsidy that was abolished last year, was so high that "we will not have the political strength to resist it". The admission comes as legislators frantically seek to alleviate the effects on voters of rising food and energy prices, which they fear could weaken consumption and dent support for the ruling parties in the run-up to next year's general election.

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