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EU hopes for energy tax deal in February

BRUSSELS, Jan 21 (Reuters) - European Union finance ministers will aim to reach a deal in February on planned common rules for the taxation of energy products, the European Commission and Germany's finance minister said on Tuesday.

Germany had last year blocked the planned EU bill as it was opposed to granting France and Italy an extension of tax breaks for road hauliers but differences had already begun to be bridged in December and an accord had been expected in January.

However, the packed agenda of Tuesday's meeting meant further discussions on the issue had to be postponed for another month.

"The discussion of that subject was deferred to the next Ecofin," EU Internal Markets Commissioner Frits Bolkestein said at a news conference.

He said there were signs of an understanding between France and Germany but declined to comment further. Germany was optimistic about the chance of a deal at the next EU finance ministers' meeting in February.

"We'll do energy tax the next time; as you can see we got pretty caught up with the savings tax in this meeting. My forecast is that we will sort out VAT and energy taxes at the next meeting," German finance minister Hans Eichel said in a briefing held on the sidelines of the meeting.

The EU has debated for years the merits and drawbacks of setting minimum tax levels for energy products, but has never agreed on the matter which requires unanimity among the bloc's 15 member states.

Currently the EU only has minimum energy tax levels on mineral oils. The new rules would impose tax floors for a range of other energy products.

Environmentalists see energy tax as an essential policy to spur companies and individuals to use energy frugally and reduce the pollution caused by fossil fuels and nuclear power.