Duty free goods win reprieve
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Your support makes all the difference.TONY BLAIR yesterday won European backing for keeping alive hopes of a stay of execution for duty free goods, after hours of frantic late- night summit negotiation.
European leaders agreed a rethink including a "possible limited extension" of duty free - but failed to agree a reprieve.
Mr Blair, who was backed by Germany and France, said that the move could pave the way for postponing the abolition of duty free, due to take place next summer. "I don't say that the extension is certain. That is not true," said Mr Blair. "I do say that the door is now open - which it previously wasn't."
Irish premier Bertie Ahern said the decision had been "reopened", and that a temporary reprieve was now likely.
But Jacques Santer, president of the European Commission, hit back saying that the principle of duty free abolition was not under question, and there should be "no illusions" about a proper reconsideration. A stay of execution could only be a matter of a "few months", he added.
The agreement, written into the summit's conclusions, were crafted in the face of fierce opposition from several smaller countries still promising to block any change of course.
All 15 nations need to agree any change, and on Friday Denmark and the Netherlands as well as Belgium refused to bow to pressure from Europe's major powers. The issue has destabilised the Danish government whose official spokesman had to deny reports that its finance minister, Marianne Jelved, had threatened resignation if a reprieve was granted for duty free.
Ms Jelved, who has the power to bring down the coalition government of Poul Nyrup Rasmussen, reiterated her determination to veto the measure when it returns to finance ministers.
The decision to end duty free was taken in 1991 by unanimous agreement of the finance ministers of the 15 member states. However, Britain, France and Germany have led a concerted campaign to shelve the plan because they believe it has implications for jobs and will be unpopular with consumers.
Under the deal agreed yesterday, the Commission will come up with proposals for tackling the implications for employment and other problems by March next year. Although no decision has yet been taken on whether or not the scrapping of duty free will be put on hold, Britain is optimistic that a reprieve will be agreed.
"What I imagine will happen is that the momentum will build up to March to get a proper delay," the Prime Minister's official spokesman said.
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