PARIS (AFP) — French President Nicolas Sarkozy on Tuesday called for a cut in European oil taxes to help consumers as fishermen and truck drivers across the continent staged protests against soaring prices.
French riot police cleared fisherman away from a key oil depot in southern France as British truck drivers staged a demonstration in London. Spanish fishermen extended a strike and lorry drivers threatened to join in.
Italian and Greek fishermen may start strikes this week.
"I want to ask the question to our European partners: if oil continues to increase, should we not suspend the VAT taxation on the price of oil?" Sarkozy said in a radio interview.
The effect of skyrocketing fuel prices on fishermen has steadily gained attention throughout the continent, and European ministers on Tuesday called for direct EU economic aid to the industry.
French Agriculture Minister Michel Barnier, on the sidelines of an informal meeting of his EU counterparts in Slovenia, said other EU ministers had agreed that "a budget should be earmarked" for economic assistance to fishermen.
Spanish Agriculture Minister Elena Espinosa Mangana called for direct EU intervention.
Sarkozy's proposal came amid three weeks of protests from fishermen and pressure to address France's cost of living, with polls showing it a top concern among the public.
French consumers pay about 19.6 percent VAT on the price of fuel.
Sarkozy said he could not take a unilateral decision to suspend or cap the tax. But he warned that the price of oil, already at record highs over 130 dollars (82 euros) a barrel, "is going to continue to increase."
Sarkozy said France would channel additional revenue from VAT on oil products into a fund to help those struggling with higher fuel prices. He predicted it would generate 150-170 million euros per quarter.
Meanwhile, French Prime Minister Francois Fillon said the country must boost its nuclear power to address the problem, adding that "we are dealing with a long-term increase of the price of oil."
A European Commission spokesman warned against tinkering with VAT on oil, as the French president suggested.
"We would be saying that we can raise oil prices and this will be paid for by the taxes of Europeans. This would, in principle, be a very bad signal that we do not want to send," the spokesman on energy issues said.
Riot police peacefully cleared striking French fishermen from an oil depot at Fos-sur-Mer near Marseille, as fleets resumed blockades of ports and cross-Channel ferries over high fuel prices.
Fishermen have staged three weeks of protests over diesel prices and many have rejected a government offer of aid.
They halted Channel ferries at Dunkirk by blocking a road to the terminal, while in Boulogne-sur-Mer they stopped two trucks carrying Norwegian salmon from reaching a fish factory.
In the Mediterranean port of Sete, fishing fleets went back on strike, while on the Atlantic coast strikes continued in Lorient, Guilvinec and La Rochelle.
Dozens of British truck drivers parked lorries on a specially-closed section of highway close to central London, blaring their horns to protest soaring fuel prices. About 100 trucks took part in a fuel protest in Wales.
A delegation was to hand in a letter to the office of Prime Minister Gordon Brown, who faces mounting pressure from lawmakers in his ruling Labour Party to abandon a planned hike in road tax.
British truck owners say they face unfair competition from continental haulers who they say can buy cheaper fuel.
Spanish lorry drivers joined fishermen in calling for the government help to cover soaring fuel costs. Representatives of road transport firms met with transport ministry officials to discuss the grievances.
One association, Fenadismer, threatened to launch a strike on June 8 unless the government gives compensation.
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