EU takes Greece to court over foreigners' cars

BRUSSELS, Sept 16 2002 Reuters is reporting that the European Commission took Greece to court on Monday to force it to scrap high taxes on cars brought into the country by temporary residents from other European Union states.

Under EU laws, EU citizens can use their cars in other member states for up to six months in any 12-month period without paying local automobile taxes.

The commission, the EU's executive body, said in a statement that Greece had violated the laws by demanding that foreigners immediately pay high car registration fees and other taxes.

"This requirement is backed up by heavy and disproportionate fines, regular seizures, confiscations and auction sales of vehicles, prosecution for smuggling and severe penalties," the commission said.

Greece faces a heavy fine if the European Court of Justice finds it guilty of breaching EU laws, but the case could drag on for many years, diplomats said.