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EU set to agree emission cut plan EU set to agree emission cut plan
(about 2 hours later)
EU leaders meeting for their spring summit in Brussels are poised to agree on a timetable for cutting greenhouse gas emissions. European leaders meeting in Brussels are set to endorse binding measures for cutting greenhouse gas emissions.
Slovenian PM Janez Jansa, who is chairing the summit, likened the plans to move to a low carbon economy to a "third industrial revolution". Slovenia's PM, who is chairing the summit, said the leaders had approved a timetable to implement an agreed 20% cut by 2020, compared with 1990 levels.
He predicted EU leaders would back European Commission targets to cut CO2 emissions by 20%, by 2020. He likened the EU's plans to move to a low-carbon economy to a "third industrial revolution".
But a UK proposal to cut sales tax on "green" goods is unlikely to succeed. The summit is also discussing financial instability, as well as liberalisation of the bloc's energy markets.
The summit also "took note" of a report by the EU foreign policy chief, Javier Solana, warning of potential security concerns arising from global warming. Slovenian PM Janez Jansa said the leaders had taken note of a report by EU foreign policy chief Javier Solana warning of potential security concerns arising from global warming.
The report says climate change will have a growing impact on global security, multiplying existing threats such as shortages of food and water.The report says climate change will have a growing impact on global security, multiplying existing threats such as shortages of food and water.
It warns that climate change could cause millions of people to migrate towards Europe as other parts of the world suffer environmental degradation.It warns that climate change could cause millions of people to migrate towards Europe as other parts of the world suffer environmental degradation.
Mr Solana's report "enjoyed a lot of support", Mr Jansa told reporters.Mr Solana's report "enjoyed a lot of support", Mr Jansa told reporters.
'Some doubts' Taxing issue
The idea put forward by UK Prime Minister Gordon Brown would cover such products as low-energy light bulbs. The BBC's Paul Kirby in Brussels says an important barometer for the success of the summit is how far the leaders are prepared to go in implementing the targets laid out for them by the European Commission.
European Commission President Jose Manuel Barroso said some countries did not agree with the idea which he described as "a very sensitive issue". The liberalisation of energy markets is another contentious issue, our correspondent says.
He said the question was whether or not lowering VAT was the best solution for promoting environmentally friendly goods.
"We have some doubts," he added.
Mr Barroso went on to say that he did not want to dismiss the importance of positive discrimination for such products, but alternatives such as rebates might be more suitable.
"We have to see how it can work, if it can work," he said.
Energy control
An important barometer for the success of the spring summit is how far the leaders are prepared to go in accepting the targets laid out for them by the commission on cutting CO2.
But, beyond that, the commission is also asking member states to push forward the liberalisation of the energy market.
Germany and France lead a group of countries hostile to calls for the break-up of big energy companies which run both power stations and the distribution networks.Germany and France lead a group of countries hostile to calls for the break-up of big energy companies which run both power stations and the distribution networks.
Mr Barroso said there was a general understanding that an internal European energy market was linked to having a secure supply and promoting renewable energy. European Commission President Jose Manuel Barroso said there was a general understanding that a European energy market was linked to having a secure supply and promoting renewable energy.
But he did not say whether Germany and France had made any concessions. Meanwhile a UK proposal to cut sales tax on "green" goods is unlikely to succeed.
Another of the key issues raised at the summit was reaction to the turmoil in the financial markets. The idea put forward by UK Prime Minister Gordon Brown would cover such products as low-energy light bulbs.
There was no indication that any concrete measures would be taken to tackle volatility when the summit comes to end on Friday. Mr Barroso said some countries did not agree with the idea which he described as "a very sensitive issue".
He went on to say that he did not want to dismiss the importance of positive discrimination for such products, but alternatives such as rebates might be more suitable.
Med club
EU leaders are also discussing the turmoil in financial markets.
They are expected to say that the European economy could ride out the current instability, as well as a downturn in the US.
Mr Barroso said it was clear that people felt it was yet "another reason not to allow complacency, but on the contrary to pursue the modernisation of the European economy".Mr Barroso said it was clear that people felt it was yet "another reason not to allow complacency, but on the contrary to pursue the modernisation of the European economy".
'Club Med'
French President Nicolas Sarkozy arrived at the talks having secured support from Germany for a watered-down proposal for a Mediterranean Union.French President Nicolas Sarkozy arrived at the talks having secured support from Germany for a watered-down proposal for a Mediterranean Union.
His aim is to forge closer ties between European countries with a Mediterranean coast and those beyond Europe, including Israel and Arab states such as Algeria and Tunisia. His aim is to forge closer ties between European countries bordering the Mediterranean and those beyond Europe, including Israel, Algeria and Tunisia.
The main objective to what some have dubbed "Club Med" was the cost, but there have also been complaints that a Euro-Mediterranean partnership already exists. The main objection to what some have dubbed "Club Med" was the cost, but there have also been complaints that a Euro-Mediterranean partnership already exists.
The compromise appears to be an "upgrade" on what already exists and hopes for its success have been carefully lowered.The compromise appears to be an "upgrade" on what already exists and hopes for its success have been carefully lowered.
In the words of Janez Jansa: "The objective is not solving the Israeli-Palestinian conflict."
Another potential source of diplomatic tension for EU leaders is a film about Islam being made by Dutch right-wing MP Geert Wilders.
Even before the film is released on the internet, there have been protests in Afghanistan and Bangladesh, raising fears that it could revive anger last seen in the Islamic world after the publication of cartoons of the Prophet Mohammed in Denmark.
When asked whether the subject had been discussed, Mr Barroso said merely that Dutch Prime Minister Jan Peter Balkenende "had informed us about that issue".