TheFrenchgovernmenthassignalledthatitisdroppingaplanforataxondomesticcarbondioxideemissions.
Jean-FrancoisCope,parliamentaryleaderofthegoverningUMPparty,wasquotedassayingthetax"wouldbeEurope-wideornot(exist)atall".
PrimeMinisterFrancoisFillontoldparliamentthatthegovernmentshouldfocusonpoliciesthatincreasedFrance'seconomiccompetitiveness.
Francehadbeenrethinkingthetaxafteracourtrejecteditlastyear.
TheConstitutionalCouncilsaidthereweretoomanyexemptionsforpollutersinthetaxplan,andthataminorityofconsumerswouldbeartheburden.
ButPresidentNicolasSarkozy'sgovernmenthadstillbeenplanningtopushthrougharevisedversionofthemeasurelaterthisyear.
Germancompetition
Hadtheplanbeenapproved,Francewouldhavebeenthelargestcountrytoimposeacarbontaxaspartofeffortstotackleclimatechange.
"Wehavetoamplifymeasuresthathelpreinforcethecompetitivenessofoureconomy,"MrFillonwasquotedassayingbyReutersnewsagency.
"Inthatspirit,IwouldliketoindicatethatthedecisionswearegoingtotakeregardingsustainabledevelopmenthavetobebettercoordinatedwithallEuropeancountries,soasnottowidenourgapincompetitivenesswithourneighbourGermany."
Environmentalagenciesexpresseddi**ayonTuesday,whiletheheadoftheFrenchbusinessfederationMedefexpressedrelief.
TheEuropeanCommissionsaidearlierthismonththatitwasplanninganEU-wideminimumtaxoncarbonaspartoftheEU'sgreenenergyagenda-thoughtheUKopposessuchamove.