The last hope of survival for Europe's Duty Free industry was extinguished yesterday when EU leaders meeting in Cologne failed to agree on a resolution to postpone its abolition beyond June 30th. The French Prime Minister, Mr Lionel Jospin, proposed that the abolition should be postponed while a new European Commission examined its consequences.
All EU states except Denmark wanted to give duty free a stay of execution but the Danes were adamant that there was no place for such tax-free goods in a single European market.
The Taoiseach, Mr Ahern, said he was disappointed with the decision. He pointed out that duty free was an important political issue in Denmark and could determine the fate of the government there.
"As with the last four meetings on this issue, France, Germany, the UK and Ireland favoured a further delay. There were two compromise plans to phase in VAT and excise duty, one proposed by France and the other by Germany. Ireland could have gone with either," he said.
The EU decided to abolish duty free in 1992, but gave the industry seven years to adjust to the decision. Yesterday's failure to agree on a rescue plan means that all duty free sales for travel between member states at airports, ferry ports and on flights and ferries must cease on June 30th.
Mr Frank O'Connell, Chairman of the International Duty Free Confederation, said he was saddened by Denmark's use of its veto. He claimed it would cost more than 100,000 jobs.
The EU has promised financial help for the regions worst affected by the abolition of duty free.
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