Germany and Sweden went into battle on Thursday against French and Italian efforts to fight soaring petrol prices with tax breaks for fuel users and higher taxes on oil companies.

On the first day of a European Union summit, Angela Merkel, the German chancellor, and Fredrik Reinfeldt, Sweden’s prime minister, spoke out against tax measures they feared would delay EU adjustment to an era in which fossil fuel-based energy would never be cheap again.

Breaking the grip of Gazprom - Apr-21Friction over oil prices contrasted with the consensus among the EU’s 27 leaders on how to handle Irish voters’ rejection last week of the bloc’s Lisbon treaty on institutional reform. ... Read full article