FRANKFURT AM MAIN: One of Germany’s top courts will decide Thursday whether some diesel vehicles can be banned from parts of cities like Stuttgart and Duesseldorf to reduce air pollution, a possible landmark judgment for the “car nation.”
Eyes have turned to the Federal Administrative Court in Leipzig after years of failure by federal, state and local governments to slash harmful emissions.
Fine particle pollution and nitrogen oxides (NOx) contribute to as many as 400,000 premature deaths from respiratory and cardiovascular disease per year in the EU.
That has brought Germany and other air quality sinners like France or Italy into the European Commission’s sights for possible legal action.
Some 70 cities in Europe’s most populous nation suffered from average annual nitrogen dioxide levels above EU thresholds last year, with Munich, Stuttgart and Cologne the worst offenders.
“The air is bad here, you cough and you get a scratchy throat, especially in winter,” clean air campaigner Peter Erben said standing beside the exhaust-blackened facades of Stuttgart’s busy Neckartor main road.
“We want immediate action, and there is no more immediate action than reducing traffic.”
After years of warnings, environmental campaign group Deutsche Umwelthilfe (DUH) took dozens of municipalities to court to force them into tougher action.
Thursday’s case is an appeal by Baden-Wuerttemberg and North Rhine-Westphalia states after lower-level judges ruled they could impose bans on some diesels in their respective capitals Stuttgart and Duesseldorf.
An in-principle decision could be announced during the day after deliberations begin at 1000 GMT.
“It’s a question of jurisdiction: can or must a state act, or is it up to the federal government to do it?” Baden-Wuerttemberg transport minister Winfried Hermann said.
In Stuttgart, local drivers and business leaders are against even limited driving bans, joined by the city branch of Chancellor Angela Merkel’s conservative Christian Democratic Union (CDU) and the pro-business Free Democrats (FDP).
In their thinking, “we can’t limit people’s freedom, we can’t dispossess diesel owners,” explained Hermann — himself a member of the ecologist Greens.
A ruling would affect all vehicles sold before so-called “Euro 6” standards arrived in September 2015.
To fend off bans and protect the keystone auto industry with its 800,000 jobs, Berlin has offered a cascade of initiatives, including a billion-euro ($1.2 billion) fund for cities to upgrade public transport and buy electric vehicles.
Ministers even suggested to the European Commission they could offer free public transport to cut down on urban car use, although without a detailed plan or budget.
Nevertheless, Merkel — sometimes known as the “car chancellor” for her close ties to the industry — and her government have been “too timid” in dealing with bosses, Association of German Cities chief Helmut Dedy told magazine Der Spiegel.
Experts and environmentalist groups agree government and industry efforts fall far short.
Berlin’s proposals “are just a drop in the ocean” said Ferdinand Dudenhoeffer, of the CAR automobile research center.
While he has called for extensive modifications to the diesel engine, a longstanding symbol of German engineering prowess, the carmakers argue they would be too costly and complex.
Instead, manufacturers Volkswagen, Daimler and BMW have offered software upgrades to millions of vehicles to reduce polluting emissions or trade-ins for newer, cleaner models.
Since Volkswagen confessed in 2015 to a global scheme to cheat regulatory NOx tests on millions of diesel vehicles, the fuel’s share of the new car market has plunged, from 48 percent to around 39 percent last year.
Minister Germann expects the judges in Leipzig to confirm that “people’s health is more important than the right to drive a car.”
Upholding the court decisions in Stuttgart and Duesseldorf would open the way to local authorities imposing a patchwork of bans.
Stuttgart and Baden-Wuerttemberg state have called instead for a standardized, nationwide “blue badge” that would identify the least polluting cars, but so far the federal government has demurred.
A ruling from the highest administrative court would also send an important signal to other tribunals and put pressure on Berlin.
“I would be very surprised if we escape diesel bans” on Thursday, cities’ association chief Dedy said.
German court could issue landmark judgment regarding ban on diesel cars
German court could issue landmark judgment regarding ban on diesel cars
GLOBAL MARKETS-Shares skid as oil blasts past $100 after Iran strikes Gulf shipping
SYDNEY: Shares in Asia fell broadly on Thursday as oil prices roared 9 percent past $100 a barrel on reports of more ships struck in Gulf waters and terminal shutdowns — a jump that could rapidly stoke inflation and push global borrowing costs higher.
Investors took little comfort from the International Energy Agency’s plan to release 400 million barrels of oil from its reserves, the largest such move in its history. As part of that, the US said it would release 172 million barrels of oil from next week.
Brent crude futures jumped 9.2 percent to $100.37 a barrel, extending a rise of more than 4 percent overnight. US crude futures surged 8.1 percent to $94.26 a barrel.
Shares slid, with MSCI’s broadest index of Asia-Pacific shares outside Japan falling 1.5 percent, while the Nikkei dropped 1.4 percent.
Chinese blue-chips lost 0.6 percent and Hong Kong’s Hang Seng index skidded 1.2 percent.
Both S&P 500 futures and Nasdaq futures fell 0.9 percent. EUROSTOXX 50 futures were down 0.8 percent and DAX futures lost 1 percent.
Two fuel tankers in Iraqi waters had been struck by explosive-laden Iranian boats, Iraqi security officials said early on Thursday, while an Iraqi official told state media that its oil ports “have completely stopped operations.”
Bloomberg reported that Oman has evacuated all vessels from its key oil export terminal at Mina Al Fahal as a precautionary measure.
“The market remains very concerned in terms of what’s going on in the Strait of Hormuz, and basically, information that we are getting over the last 24 hours is not a good reading,” said Rodrigo Catril, a senior FX strategist at NAB.
“It sort of reemphasizes the view that we should be worried about this and the risk is oil prices are going to get higher from here rather than coming down.”
Iran had earlier stepped up attacks on merchant ships in the Strait of Hormuz, raising the number of ships struck in the region since fighting began to at least 16. Tehran has warned the world to get ready for oil at $200 a barrel.
Throwing more uncertainty into the air, US President Donald Trump on Wednesday declared the war on Iran has been won but he will stay in the fight to finish the job.
INFLATION RISKS
US data showed the consumer price index rose 0.3 percent in February, in line with forecasts and above January’s 0.2 percent increase. The report, however, was not regarded as particularly relevant given that the Iran war has started to fuel inflation.
In bond markets, the risk of rising inflation outweighed safe-haven considerations to shove yields higher globally. Yields on 10-year Treasury notes rose 3 basis points to 4.2374 percent on Thursday, having jumped 7 bps overnight.
Fed funds futures extended their slide as investors feared higher inflation would make it harder for the Federal Reserve to ease policy. Markets are just wagering one more rate cut from the Fed this year.
The danger of energy-driven inflation has led markets to wager the next move in rates from the European Central Bank could be up, possibly as early as June.
Nervous investors sought the liquidity of dollars while shunning currencies from countries that are net energy importers, including Japan and much of Europe.
The euro slipped 0.2 percent to $1.1539, after closing at the weakest level since November last year. The dollar inched up 0.1 percent to 159.12 yen, the strongest level since January when reported rate checks from the US Fed spooked yen bears.
The risk-sensitive Australian dollar lost 0.4 percent to $0.7122, having hit a more than three-year high of $0.7188 on Wednesday as bets for an imminent rate hike from its central bank grew.









