The fiscal system has in theory a double aim commonly recognized in democratic countries : - to feed public finances in order to allow institutions to assume their duties, in a spirit of redistribution so as to reduce social disparities; - to encourage socially useful activities and to discourage those that may turn to be harmful or generate social costs; Analyzing the situation of the fiscal system in the different member states of the European Community, we have no option but to ascertain that the second aim is very much neglected, or even forgotten. Apart from the existence of indirect taxes on tobacco and alcohol, using taxation to orientate or to modify consumption behaviours is still very uncommon. However for a few years, ecological awareness has been leading to a few initiatives, particularly in favour of energy savings or recycling (taxation abatement when investing); more recently, taxes on some products called ecotaxes since they aim at protecting environment have appeared in some states (Denmar

k, Germany, Italy and most of the E.F.T.A. countries). During the Dublin summit in June 1990, the European Council was insisting on the need to resort to economic and taxing tools in order to make the environment policy progress. This declaration served as the ground to the Commission proposal aiming at levying a specific ecotax on non-renewable energy sources in order to reduce demand, more specifically for high carbon content energy sources. At the Rio summit in late June, the ecotax on energy was very much to the fore of the moment since the U.S.A. denied to join in with the European Community and the E.F.T.A. on that particular point. The Commission turned back to a totally new draft directive as it ties up its enforcement to the attitude of other countries of the O.E.C.D. which should adopt similar measures. Even if the debate has temporarily lost some acuteness, it clearly appears that it will start off again in the next months, under the pressure of the environment protecting associations, of the Gr

een parties and, on the institutional level, of the European Parliament. It is to be reminded that the European Parliament has repeatedly pronounced its favourable opinion towards ecotaxation (report of Mr. Vohrer) and more particularly towards an ecotax on energy (reports of Mrs. Jensen and of Mr. Lannoye). As a matter of fact, it is necessary to distinguish between two types of ecotaxes : - those aiming at reducing, or even minimizing an unavoidable consumption among which the tax on energy or water can be ranked; - those trying to reorientate consumption towards products more respectful for environment and resources preservation, what implies that "clean" substitute products be available on the market; for instance, it is the case for paper, batteries, threwable drink tins to which there is a clear alternative : recycled paper, rechargeable batteries, returnable glass bottles. If escaping from the second type of ecotaxes proves to be really possible by making the right choice of consumption, it is not

true as far as the other type is concerned, at least in the short run. The problem of allocating the product of an ecotax on energy is essential : the matter is to diminish or even to cancel at one and the same time the evil effects, especially on the social level, as well as to use the rest to develop the energy saving programmes and the (use of) renewable energy sources in Europe of course but also in Southern and Eastern countries. With regard to this, the insufficiency of the current proposal of the Commission is blatant : besides the conditionality towards the other O.E.C.D. countries, derogations are proposed in favour of the biggest energy consuming industrial fields and the concern about not to make the fiscal pressure heavier deprives the member states and the Community of new financial resources intended to serve an alternative energy policy. It clearly appears that the introduction of ecotaxation requires an overall estimation of the potential effects to be expected as well as legislative and

regular economic accompanying measures that give the best guarantee of their efficiency and acceptability. How is it possible actually to persuade people of the merits of ecotaxes proposals if the mere actors answerable for nuisance, against which ecotaxes pretend to fight, are exempted ? In late March, in a report on the situation of the environment in the European Community, the Commission points out that "in spite of the measures taken in the last twenty years, the slow but continuous degradation of the environment in the Community is going on". Furthermore, the Commission emphasizes that most of the existing tools can not cope with the present levels of environmental degradation in a satisfactory way. Ecotaxes are no wonder solution in order to work out the numerous environmental problems still to be solved ; however, they can be a powerful instrument of change in order to initiate the progress towards a sustainable development.