PAN-European fleets will be among the first beneficiaries of the Austrian government's determination to make tax harmonisation a key goal of its presidency of the European Union. Different VAT and vehicle registration fees in EU member states have threatened to hinder any cross-border fleet deals, even after the advent of the single European currency.

The Euro comes into force on January 1, 1999, and will increase pressures for tax harmonisation by exposing the differentials which exist. These are particularly acute in the motor industry, helping to explain the wide divergence in on-the-road new car pricing across Europe.

Austrian finance minister Rudolf Edlinger is understood to want to take advantage of the momentum for greater economic co-operation created by the launch of the Euro to push for greater tax harmonisation. Taxes on savings, energy and corporation taxes will be in the frontline of Austria's efforts, with its first goal being the establishment of European minimum, rather than equal taxes.