The Irish Duty Free Association has welcomed the election of Mr Gerhard Schroder as German chancellor. Mr Schroder has been a long-time campaigner against the proposed abolition of duty-free allowances within the EU from next year. The abolition would lead to the loss of 7,400 jobs in Ireland and 2,300 further job losses in companies supplying products to duty-free, according to the association.
Regional airports and ports would be badly affected, air fares would increase by £20 and £30 and some air and ferry services would no longer be viable.
Reversing the decision would take a unanimous decision by EU finance ministers. After intensive Irish lobbying, seven out of 15 members came out in favour of a study to re-examine the decision last May. "The International Duty Free Confederation is optimistic that all 15 can be persuaded to vote in favour of retaining duty-free once the full facts of the impact of abolition become clear," the association said.