Proposal would lead to more taxes, higher utility costs and new burdens for Europeans

The MEP of the Hungarian Momentum party supports all points of the EU proposal package which would impose additional taxes on people and new burdens on motorists and increase utility costs. Anna Donath took a stand on Tuesday by EU Commissioner Frans Timmermans' proposal, which, however, was rejected by the majority of the European Parliament. This compilation by Mediaworks News Centre presents the disputed parts of the package, as well as the positions of Momentum's politician and Hungary's ruling Fidesz party on the issue of carbon tax.

POLITICS JUNE 10. 2022 13:20

Momentum MEP Anna Donath supports the introduction of an additional tax to be borne by ordinary citizens, according to the Hungarian Origo news site. On Tuesday Ms Donath expressed her support of the „Fit for 55” package of proposals, submitted by Dutch EU Commissioner Frans Timmermans, which sets out that

a carbon tax should be paid by everyone using vehicles propelled by internal combustion engines. The European Commission’s vice president would also impose a climate tax,

by revising the EU’s emissions trading scheme. These proposals would mean that the green transition would be paid by EU citizens rather than the largest polluters – the multinational companies – and that the costs of utility bills and transport would increase further. The package also supports the minimum energy tax, a scheme that would influence – i.e. increase – energy prices, to incentivise people to use energy generated by less CO2 emissions.

On Wednesday the European Parliament rejected the package and sent it back to the Commission for modification, but it does not change the fact that the Hungarian Momentum party supports proposals that would significantly increase the cost of living for Europeans and Hungarians.

Plans afoot to influence consumption by price hikes

In her piece published on the online portal Merce, Ms Donath said: “The European Union needs to make a real difference in this broader context, and the spirit of the Fit For 55 package of proposals reflects this intention, as it includes a number of innovative solutions to help the green transition. First, it extends the quota trading system to new areas.”

Another important pillar of Fit For 55, according to the Momentum MEP, is the reform of the Effort Sharing Regulation, which covers more than half of EU emissions. These are basically sectors that are related to people’s direct consumption, such as transport, heating, or agriculture. The target is a 40-per-cent reduction in emissions in these areas.

The package also includes a plan for introducing a minimum energy tax, which would be a completely new element of EU-wide emission reductions. This instrument would encourage the use of energy with lower emissions by influencing energy prices, Ms Donath pointed out in the article, but she failed to add that this „influence” would practically equal entail price hikes.

Momentum bent on accelerating changes

The politician would even bring forward some proposals, like the kerosene tax, the phasing out of the free emissions permits for quota trading, and the elimination of internal combustion engine cars.

As she explained, the planned measures could easily be made more effective in several areas. On the one hand, this concerns timing issues, as several amendments to the package will only enter into force in 2030 or later. These are, for example, the phasing out of free emission permits for quota trading in 2036, or the EU kerosene tax, which will not enter into force until 2032, either. Under the „Fit For 55″ package, no new internal combustion engine cars would be allowed on the EU market after 2035, but this is a target that several major car manufacturers have already committed themselves to,” Ms Donath opined, adding that these objectives could and should be achieved years ahead, it is just a question of political will. On the other hand, the EU could also set more ambitious targets, for example, the use of renewable energy sources could be set at 50% , instead of 40, the technology is already available, the Momentum MEP said.

Fidesz success in the EP

After the majority of lawmakers had rejected the package proposed by Timmermans on Wednesday, Edina Toth, an MEP of Hungary’s ruling Fidesz-Christian Democrat party alliance, said that the vote was a significant success for Fidesz MEPs, who have consistently fought against imposing a climate tax on transport and people, chiefly because it would have a negative impact on household utility costs, driving them up further.

„The result of the vote clearly shows that the climate package is bleeding from several wounds, and the proposal failed to win political and social support,” the MEP emphasized.

„It is regrettable that another ill-considered and irresponsible climate policy action plan from Brussels, which defies common sense, would have put the price of greening on citizens and families, which would have been unacceptable for us,” Ms Toth added.

 

POLITICS

Tags:

anna donath, european commission, fit for 55, frans timmermans, momentum, renew europe, taxes