Commission, Germany agree on road toll plans

Compromise means there will be a charge for driving on the autobahn.

The German government and the European Commission are about to settle a two-year dispute over whether German plans to impose tolls on its historically free autobahns discriminate against foreigners and violate EU law, both sides said Thursday.

Berlin has agreed to tweak plans for a disputed road toll scheme to make it compliant with EU rules. The Commission has in return promised to stop a case before the European Court of Justice against Germany over the issue, EU officials involved in the negotiations told POLITICO.

Although Germany has imposed a toll on trucks using its highways since 2005, it is one of the few European countries to allow car drivers to use highways at no extra charge. But the costs of maintaining Germany’s extensive autobahn network have increased pressure to charge drivers. The suggested scheme would have imposed varying costs depending on engine size.

The problem was that German-registered cars would largely escape the increased charges, prompting the Commission to take Germany to court over what it called “discriminatory road charging,” as EU rules forbid discrimination based on nationality.

The proposed German scheme would have allowed owners of cars registered in Germany a deduction of the toll from their car tax bill. The new compromise includes changes to that part of the legislation.

Germany is going to lower annual car tax by an additional €100 million, according to sources familiar with the plans, and shift the system towards rewards for environment-friendly cars.

That means Dobrindt can keep his promise to the electorate that they will not face additional charges from the levy, and it avoids Germans being able to deduct the exact sum they are going to be charged for the toll, which in the Commission’s view was discriminatory.

Those and other possible changes to German road toll legislation will require the Bundestag’s consent.

Berlin postponed the levy last year. Since then, Germany and the Commission have been trying to work out a compromise.

Over the past few weeks, German Transport Minister Alexander Dobrindt and Commission President Jean-Claude Juncker held a series of talks, in person and over the phone, and the two “are well on their way to find a solution,” the spokesperson said.

“Very far-reaching progress has been made in these talks. We are very confident that the last remaining open questions will be clarified in the course of November.”

“We have a common interest in introducing an EU-compliant toll in Germany,” the Commission spokesperson said.

In a statement sent to POLITICO, Dobrindt thanked Juncker, saying there had been close cooperation between the two men on the car toll. “Jean-Claude Juncker got himself personally involved to find a common solution.” Dobrindt said he was “very confident” there will be an agreement by the end of November.

A compromise would put an end to the fight between Brussels and Berlin, or rather Munich, which is where Chancellor Angela Merkel’s Bavarian ally CSU is headquartered. Senior CSU figures such as Dobrindt and party leader Horst Seehofer have heavily criticized the Commission for blocking their proposals.

The toll was a core issue in the CSU’s campaign for the 2013 general election.

According to EU officials involved in the negotiations, Dobrindt agreed to introduce cheaper short-term passes than previously foreseen; they would cost €2.50 for 10 days.

In the Commission’s view, the originally proposed prices for those vignettes were “disproportionally” high in relation to the annual fee that German car owners would typically choose.

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