EU greenies are is still bullish about the European Court of Justice´s ruling that airlines based outside of the European Union must pay the controversial EU carbon tax. However, celebrations in Brussels are wildly premature. This is a fight - the EU against the rest of the world - that the European Union is bound to loose.
China has warned the European Union to abandon its controversial carbon tax on airlines or risk provoking a global trade war.
Adding weight to the warning, an industry insider told the Financial Times that the Chinese government was seriously considering measures to hit back at the EU if it insists on charging international airlines for their carbon emissions.
Read the entire article here
The threat of knock-on effects hung in the air, however, after a warning by US Secretary of State Hillary Rodham Clinton of possible reprisals some days ago.
The judgement “risks unleashing a trade war between Europe and the United States,” a high-ranking aviation source said.
Read the entire article here
As you say, this seems to be one the EU can't win. At least I hope not.
ReplyDeleteAny EU stopovers where there are economic non-EU alternatives will divert to those alternatives.