European Union finance ministers have failed to agree on tax breaks to ease the impact of high oil prices despite pressure from France and warnings they were threatening economic growth.
Yesterday, oil prices shot back up toward record level over $55 per barrel after US heating oil stocks fell for the fifth month in a row, fanning fears of a supply crisis during the northern winter.
At a five-hour meeting in Luxembourg, French finance minister Mr Nicolas Sarkozy urged other EU countries to follow his lead in pledging to cut the tax rate on fuel at home to return rising revenues to the taxpayer.
Mr Sarkozy has also promised aid to farms and other businesses unable to pass on higher fuel costs to their customers.
"In view of the urgency of the problem currently facing our countries, I definitely want us to adopt as soon as possible a series of effective measures," Mr Sarkozy said, before the session that began last night.
But Dutch finance minister Mr Gerrit Zalm, who chaired the meeting, said ministers were unable to agree on what would be an "adequate" and "co-ordinated" response to persistently high oil prices that threaten to put a damper on growth.
Officials also warned Mr Sarkozy not to break ranks. EU Economic and Monetary Affairs Commissioner Mr Joaquin Almunia said his office "continues to stick up for rigorous co-ordination of any action".
Last June, EU finance ministers promised not to engage in any "unilateral action" that could affect the single market.