The French government has signalled that it is dropping a plan for a tax on domestic carbon dioxide emissions.Jean-Francois Cope, parliamentary leader of the governing UMP party, was quoted as saying the tax "would be Europe-wide or not (exist) at all".
Prime Minister Francois Fillon told parliament that the government should focus on policies that increased France's economic competitiveness.
France had been rethinking the tax after a court rejected it last year.
The Constitutional Council said there were too many exemptions for polluters in the tax plan, and that a minority of consumers would bear the burden.
But President Nicolas Sarkozy's government had still been planning to push through a revised version of the measure later this year. Read more.