EU court rules German road toll for foreigners is discriminatory (updated)

Kapsch TrafficCom AG

18/06/2019 09:43

(Adds details of planned toll system, complaint)
    LUXEMBOURG, June 18 (Reuters) - A planned German highway
toll for cars discriminates against foreign drivers and breaches
European Union law, the EU's highest court said on Tuesday.
    The European Court of Justice backed a challenge from
Austria that the system was set up so that the economic burden
fell solely on drivers of vehicles from EU countries other than
Germany.
    The ruling means Germany cannot introduce the toll, which
was due to take effect in October 2020. It had passed a law in
2015 establishing the charge for passenger cars that used the
country's highways.
    Those with cars registered in Germany would have been
charged an annual fee of up to 130 euros ($146.09), but they
would have been given a corresponding reduction in motor vehicle
tax.
    Drivers living elsewhere would also have needed passes to
drive on German highways, again up to a maximum of 130 euros a
year.
    Austria, backed by the Netherlands, complained that the tax
relief for German residents effectively meant only foreign
drivers were truly paying the infrastructure charge.
    The court on Tuesday agreed, saying the planned system
constituted indirect discrimination on grounds of nationality.
    Germany, supported by Denmark, had argued the charge was in
line with EU transport policy and the principle that users and
polluters should pay the cost of the highway network.
    The court disagreed. It said drivers in Germany did not have
the opportunity to pay for less than the full year even if they
rarely drove on highways.
    German ticket operator CTS Eventim  EVDG.DE  and Austrian
road systems specialist Kapsch TrafficCom  KTCG.VI  were awarded
a 2 billion-euro contract in December to operate the toll.
    German already has a road toll for trucks.
    
($1 = 0.8898 euros)

 (Reporting by Philip Blenkinsop; editing by Catherine Evans,
Larry King)
 ((philip.blenkinsop@thomsonreuters.com; +32 2 287 6838; Reuters
Messaging: philip.blenkinsop.thomsonreuters.com@reuters.net))