G8 should tackle food, fuel prices - EU ministers

By Jan Strupczewski and Huw Jones

LUXEMBOURG (Reuters) - Soaring prices at Europe's supermarkets and fuel pumps need a coordinated response by the world's top eight economies rather than short-term fiscal or monetary policy changes, EU finance ministers said on Tuesday.

The ministers also said they would look at ways to curb speculation which has help push up food and oil prices.

The chairman of euro zone finance ministers, Luxembourg Prime Minister Jean-Claude Juncker, said he had asked for food and fuel prices to be discussed at a summit of European Union leaders on June 19-20 and at a global level.

"I do think we have to address these issues at G7 and G8 level," he told reporters, echoing the words of EU Economic and Monetary Affairs Commissioner Joaquin Almunia.

The Group of Eight countries are the United States, Canada, Japan, Russia, Germany, France, Italy and Britain.

EU ministers stuck to a 2005 commitment not to cut taxes on fuel to cushion the impact of expensive oil on consumers, sidestepping a suggestion by French President Nicolas Sarkozy to cap sales tax on fuel if prices continue to rise.

"In the short run we don't see any particular reasons why we should take any tax measures to this end. We have to take into account long-term changes in the structure of prices," said Andrej Bajuk, the finance minister of Slovenia who chaired the monthly meeting of the ministers from the 27-nation bloc.

"It appears very likely that oil prices will stay at levels where they are. Short-term tax measures will not alleviate the problems arising from high oil prices and food prices and we all agree on that," Bajuk said.