The duty-free industry appeared to have won a reprieve last night after European Union leaders, meeting in Vienna, agreed to reconsider a decision to end duty-free privileges within the EU next June.
A senior German government source said the leaders agreed over dinner last night to allow EU Finance Ministers to determine the fate of the industry.
German leaders are confident that, along with Britain and France, they can push through a deal that would allow duty-free shops to remain open. However, the Taoiseach, Mr Ahern, remained pessimistic last night, insisting that the issue would be discussed further at today's session of the EU summit.
Ireland favours the retention of duty-free privileges and industry sources claim that up to 4,000 Irish jobs depend on duty-free, either directly or indirectly. Critics of the business insist that most airport shops would remain open even if duty-free sales were abolished and that the impact on jobs would be minimal.
Within the EU, Denmark and the Netherlands are the leading advocates of the abolition of duty-free. They argue that the system is an anomaly within a single market and that reversing the 1991 decision would undermine the authority of the EU. Last night's compromise offers a lifeline to duty-free sales but German sources pointed out that any decision by EU finance ministers to reverse abolition would have to be unanimous.
This weekend's summit in Vienna has been dominated by wrangles over budget contributions and the financing of agriculture policies. Most observers agree that little will be resolved before the 15 leaders return home this evening. So any agreement on a popular issue such as duty-free sales will be seized on by politicians who would otherwise leave the snow-covered Austrian capital empty-handed.
