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| Tuesday, 19 September, 2000, 11:13 GMT 12:13 UK IMF warns of oil price threat ![]() The warning comes as protests continue The International Monetary Fund has warned that high oil prices are a significant threat to global prosperity. In a report due to be delivered to its annual meeting in Prague next week, the IMF says the tripling of crude oil prices since early last year could cause a recession. The report comes as protests over high fuel prices spread to Israel, and continue to cause chaos in several European countries. There is still no consensus among governments over how to respond, but the British Chancellor Gordon Brown has rejected demands for a quick cut in fuel duties. In Israel, hundreds of truck drivers staged a go-slow along several major routes and are threatening to step up their action throughout the week. Spanish farmers have taken their tractors onto the streets of major towns and cities, including Madrid, to block traffic and oil depots. Sporadic demonstrations are continuing in Sweden, the Republic of Ireland and Germany. Israeli action Israeli Prime Minister Ehud Barak has promised to take action to end the protests if they cause major disruption, and says the price of fuel in Israel is low enough.
Israeli police say the disruption has so far proved minimal, as most people had heeded warnings to avoid the roads most badly hit. The latest protests come as oil prices reached a 10-year high, with crude oil trading at as much as $34.35 per barrel on Tuesday morning. Protests over high fuel prices have swept Europe in September, and direct action has forced governments to consider measures aimed at reducing their impact. Spanish blockades Fuel price protests are continuing in Spain, with thousands of farmers due to gather in 34 towns and cities on Tuesday.
The farmers say they will blockade traffic and fuel depots around the country from 1100 local time (0900 GMT) after the collapse of talks between their unions and the Spanish Government. Elsewhere in Spain, blockades continue in the northern towns of Burgos and Leon despite riot police action on Monday evening to break up blockades of depots in Salamanca and Valladolid. Fishermen also lifted their one-day blockade of Barcelona early on Tuesday morning, but warned that unless a breakthrough was made in talks, they would resume their action. This seems likely as protesters continue to reject the Spanish Government's offer of income-tax cuts to offset rising fuel prices. Scandinavian protests Protests are also continuing in Scandinavia, with some 60-70 truck drivers blockading goods terminals in the port of Gothenburg in Sweden on Tuesday.
Truck drivers are also threatening to resume their blockade of oil refineries in Gothenburg, which ended on Monday evening. However, protests in Norway have collapsed following a threat of legal action against truckers from Norwegian state oil company Statoil. Tax cuts In Finland, the government has announced road tax cuts for truck drivers. Juha Norppa-Rahkola from the Finnish Trucking Association, said: "It's a step in the right direction, but it's not enough...it's really peanuts." The German Government has also been attempting to address high fuel price protests by extending its proposed tax allowance to cover all people who drive to work, irrespective of distance. Despite the proposals, over 300 trucks, taxis and buses paralysed the centre of Hamburg on Tuesday morning bearing banners reading "Diesel price down or we lose our jobs". |
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