Hopes raised for swift deal on EU car CO2 law

Italy reportedly agrees deal with major car-making countries ahead of crunch talks with MEPs next week

Italy has given its backing to a deal between major EU car-producing countries on draft legislation to curb CO2 emissions from new vehicles, the news agency Reuters reported on Friday, quoting government sources.

Rome has apparently withdrawn its opposition to a deal worked out by France, Germany and the UK after winning further concessions on non-compliance penalties for its domestic manufacturers of smaller cars (EED 03/11/08).  Under the compromise, makers of smaller cars would pay only €5 per vehicle if they exceed their fleet-wide CO2 target by 1 gram, rising to €10 for 2g and €15 for 3g, the agency reports.

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