Main focus of Thursday, June 12, 2008

Europe's lorry drivers on strike

All over Europe lorry drivers are protesting against high fuel prices. In Spain and Portugal the violent clashes even claimed the lives of two strikers. How should governments and the public react to the fuel protests?

The Irish Times - Ireland

Amid growing protests in Europe triggered by the rising oil price the daily The Irish Times warns against political intervention in the market: "In Spain, truck drivers have blocked roads. In France, fishermen have blockaded ports. And in London, lorry drivers recently carried a coffin to the doors of parliament at Westminster to dramatise the financial plight of the haulage industry. There are, however, no quick or easy solutions to this global energy problem, which is largely explained by a growing imbalance between supply and demand for a finite resource, oil. ... President Sarkozy of France has proposed that EU countries should suspend VAT on fuel above some unspecified threshold to offset the impact of high fuel prices. ... His proposal, however, makes little economic sense. For the most likely beneficiary of a fuel tax reduction would be the oil-producing countries. Opec would, undoubtedly, take the opportunity to raise oil prices. ... What is a market problem, the imbalance between oil supply and demand, requires a market solution - and not a misguided French political intervention." (12/06/2008)

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More from the press review on the subject » Energy, » Infrastructure / Travel and Transport, » Trade, » Consumers, » Europe, » Global

Cinco Días - Spain

The liberal business newspaper Cinco Días is angry about the attitude of the striking lorry drivers: "Of the twelve professional associations [of forwarding agents] sitting at the negotiating table, three - which represent less than 20 percent of the sector - reject ... the [government's] package of measures. They argue that the government has failed to respond to their main demand: a minimum haulage rate, which the government rejects because it is at odds with its convictions on economic policy and with the EU's guidelines on free competition and is also rejected by other representatives of the sector. Fenadismer, the main representative of the strikers, believes that imposing a minimum rate to which all forwarding agents would have to adhere, could exclude many lorry drivers who do not cover their costs [and thus drive down prices] from the market. ... The striking organisations' attempts to impose a minimum rate at any price and thus to reject dialogue are unjustified. And even less justified is insisting on maintaining an unreasonable, if not indeed illegal means of exerting pressure.” (12/06/2008)

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More from the press review on the subject » Energy, » Infrastructure / Travel and Transport, » Spain

La Repubblica - Italy

The Italian daily La Repubblica reports on the EU's plans for cushioning the impact of soaring petrol prices: "Governments, the document suggests, should think twice before saying no to nuclear energy. A further element of the EU's formula is greater transparency regarding reserves and reducing VAT on energy products. ... In short, this is a soft approach aimed at helping the Union come to terms with the reality of exorbitant oil prices and an attempt to coordinate the individual initiatives of different member states - for example Italy's 'Robin Hood tax', the feasibility of which the EU, too, is now beginning to doubt, or the Spanish government's tough response to the lorry drivers' strike". (12/06/2008)

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More from the press review on the subject » EU Policy, » Energy, » Infrastructure / Travel and Transport, » Tax Policy, » Italy, » Spain, » Portugal, » Europe
All available articles from » Alberto d'Argenio

Diário de Notícias - Portugal

After a lorry drivers' strike lasting three days emptied supermarket shelves and blocked filling stations nationwide, Portugal's government and transporters reached an agreement. The chief editor of the daily Diário de Notícias had the following to say: "In view of one of the worst international economic crises it is unacceptable for lorry drivers to bring the country to a standstill, causing major losses in those sectors of the economy that are dependent on them. Head of Head of government José Sócrates decided to take the diplomatic approach. He made concessions on the less important issues and remained firm on the important ones. It is understandable that the lorry drivers are worried about rising fuel prices. But ... to have taxpayers subsidise fuel for this professional group would mean a step backwards." (12/06/2008)

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More from the press review on the subject » Domestic Policy, » Energy, » Infrastructure / Travel and Transport, » Economic Policy, » Portugal
All available articles from » João Marcelino

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