Sarkozy to press for lower VAT for restaurants, green products

As France takes over the EU presidency, Nicolas Sarkozy has staked his reputation on persuading Europe to allow lower VAT rates in the catering sector, Le Figaro reports.

Sarkozy’s predecessor Jacques Chirac failed several times to win support for reduced VAT for restaurants and bars, but Sarkozy told a TV interviewer on Monday that he would continue the fight.

“We need to profoundly change the way we are building Europe,” he said, adding that the chief aim of the French presidency would be to “protect Europeans in their daily lives”.

But Sarkozy has already failed to persuade his fellow leaders to agree to cutting VAT on fuel, a move designed to alleviate the current fuel crisis, and his chances of getting an agreement on the catering sector also remain slim.

He said he would also push for reduced rates on DVDs and music that would tax them at the same rate as books, although he admitted that this was unlikely to be achieved during the presidency.

Sarkozy also announced plans to push for a 5.5 per cent tax rate on ‘green’ products, such as environmentally friendly houses or cars.

Commenting on the Irish no vote – and before the announcement by Poland’s president that he would not ratify the treaty – Sarkozy said the top priority was for the rest of Europe to continue the ratification process, and that he would go to Ireland to try to find a solution.

On the Beijing Olympics, Sarkozy said he would decide next week whether to boycott the opening ceremony, depending on the Chinese government’s willingness to talk with the Dalai Lama.

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