Clash looms over end-of-life vehicle rules

Date: 04/05/2000

By Renée Cordes

THE European Commission is refusing to back down in a battle with MEPs over the Parliament's call for limits to be set on car-makers' financial responsibility for recycling old vehicles.

The argument looks set to dominate this month's conciliation talks between the assembly and EU governments over the proposed end-of-life vehicles directive, making a swift agreement on the final shape of the legislation unlikely.

In their second reading on the proposed legislation, MEPs argued that manufacturers should only be required to pay for 'all or a significant part' of the recycling costs of new cars registered 18 months after the law enters into force. This means that older vehicles would be excluded from the scope of the directive.

The Parliament also approved a vaguely-worded and confusing amendment which states that the last owner of a vehicle should not incur any costs for recycling, thereby supporting the principle of a free recycling scheme. Carmakers fear that this would be impractical in some member states such as Denmark, where the costs of recycling are often factored into insurance premiums.

The Commission has said it cannot accept either of these amendments, arguing that the Parliament's move to exclude older vehicles from the scope of the legislation would "weaken one of the basic environmental pillars of the directive". It insists that producers should pay for recycling both new vehicles and older ones which are already on the road.

Last summer, Union governments grudgingly agreed to force carmakers to foot the bill for taking back 'end-of-life' vehicles, but delayed introduction of the proposed legislation from 2001 until 2006 under intense pressure from Germany and the UK, which were anxious to protect their own car manufacturers. The Parliament's stance, and the Commission's refusal to bow to MEPs' demands, are set to reignite this debate.

The EU executive has also rejected another parliamentary amendment calling for a study to be carried out into possible distortions in competition as a result of the proposed legislation. Commission officials question the value of producing such a report, given that rules for monitoring competition in general are already enshrined in the Union treaty.

In addition, the Commission is resisting moves by MEPs to include spare and replacement parts within the scope of the planned directive, to allow new derogations for the phase-out of heavy metals from scrap cars and to introduce quality standards for reusable parts.

The EU executive originally came forward with its proposals for an end-of-life vehicle directive in 1997, with the long-term goal of ensuring that all new vehicles are recycled completely by 2015 and encouraging manufacturers and suppliers to reduce the use of dangerous substances in new vehicles and spare parts.

The European Commisssion is refusing to back down in a battle with MEPs over the Parliament's call for limits to be set on car-makers' financial responsibility for recycling old vehicles.