EU to consider tax breaks for green products: UK

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The leaders added a clause to their summit declaration inviting the European Commission "to examine how Value Added Tax can play a positive role in combating climate change," even though Commission President Jose Manuel Barroso made clear on Thursday he did not favor the idea and there was no consensus.

BRUSSELS (Reuters) - European Union leaders agreed on Friday to consider at the request of Britain and France how sales tax breaks for environmentally friendly products could help fight global warming, a British official said.

The leaders added a clause to their summit declaration inviting the European Commission "to examine how Value Added Tax can play a positive role in combating climate change," even though Commission President Jose Manuel Barroso made clear on Thursday he did not favor the idea and there was no consensus.

"It's a polite way of saying 'No'," an EU diplomat said, noting that all EU tax decisions have to be taken by unanimity. "It's a way of saving face on both sides."

(reporting by Adrian Croft and Darren Ennis, writing by Paul Taylor)

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