European Stars and Stripes (Newspaper) - September 2, 1990, Darmstadt, Hesse                                Page 14 a the stars and stripes sunday september 2,1990business news Europe better equipped to handle Energy crunch Rome apr in Rome gasoline has shot to almost $5 a gallon since Iraq invaded Kuwait. Many swedes Are paying $75 to fill her up. But analysts say that despite exorbitant Price hikes Western Europe will be less damaged than the United states by rising Energy prices. A the picture that i draw is of a Europe that is not As dependent on Oil As it was at the beginning of this decade a said Peter Bogin the assistant director for Oil markets at Cambridge Energy research associates in Paris. Oil and Gas prices have increased worldwide since Iraq invaded Kuwait on aug. 2. The Price of a barrel of Light Sweet crude hit $32 in new York before receding this past week following Opecz a decision to boost production to make up for lost iraqi and kuwaiti Oil. Analysts expect the Oil crisis to push up inflation and slow growth in Western Europe. But there is Little talk about an imminent recession As in the United states. That a because of the factors in Europe a favor relatively Good economic health a drop in Oil use and the cheapness of the Dollar the currency used for Oil purchases. Western Europe and the United states import about the same amount of crude Oil per person Bogin said. But in addition to the imports americans use an equal amount of domestically produced Oil. A a we re Gas guzzlers. That a the problem a said Paul Home an american who is chief International economist for Smith Barney International in Paris. Europeans have always relied less on cars than americans. With traditionally lower incomes europeans bought fewer More Gas efficient cars. Many governments developed extensive train systems. Western Europe was still hit hard economically by the Energy crises of 1973-74 and 1978-80. But when Gas prices started falling Many governments kept them artificially High through taxation aiming in part to Cut consumption. Thus even though Many Western europeans now Are As wealthy As americans they done to buy cars that Are As big or use them As much. A people can to afford to run a Cadillac when the Price of Gas goes to a Dollar a liter a said Jacques Michaux the Deputy head for Oil and Gas at the european Community a Energy division. There Are roughly 4 liners to a gallon. In Italy for example the Best Selling car is the compact Fiat Uno which gets about 47 Miles to the gallon at 55 Mph. The most popular . Car last year was the mid size Sedan Honda Accord which gets about 28 mpg on the Highway. In the past decade Western Europe has also followed the United states in slashing its Reliance on Oil to produce electricity. France for example has become the worlds Leader in Reliance on nuclear Energy getting More than 80 percent of its electricity from nuclear plants. England and West Germany have switched to Coal to produce some of their Power while Norway exports electricity from its numerous hydroelectric plants. One glaring exception is Italy which still gets nearly half its electricity from Oil. While Western Europe is not expected to suffer the economic damage it did from previous Oil crises there is still concern about Price hikes at the pump since the aug. 2 invasion of Kuwait. The increases have varied widely ranging from no Rise in pump prices in Portugal to 8 percent in Italy to As much As 22 percent in Greece. The increases have prompted France to slap on Price controls and West Germany and Britain to investigate Oil companies pricing policies. Italy plans to freeze prices of Petroleum products for three months. However Many europeans have also grown used to stiff Gas costs. A i did no to like it obviously a said one Man As he filled his Gray Fiat Uno at a Rome Gas station. A but Here the Price is always going up. For different reasons but its always going  european Gas prices Here Are prices for a gallon of leaded gasoline at the pump in 13 Western european countries. The figures represent prices As of August 25.Italy 1,500 lire per liter Sweden 7.32 Kronor per liter _ _$4,05 1denmark 17 Kroner per liter France 6 francs per liter Netherlands 1.94 guilders per liter _ $4.21 Norway 6.50 Kroner per liter _$4.10 Switzerland 1.29 Swiss francs per liter__$3x87 Belguim 32.40 francs per liter. $180 Portugal 137 escudos per liter _$3.76 England 217.8 Pence per liter. $3x56 Greece 130 drachmas per liter _$3.23 i Spain 80 pesetas per liter _$3.14 West Germany 1.249 Marks per liter i source the associated press a amps Wes Booher tax free Bonds a Good Deal for most investors by the associated press no matter what you make if you re Able to put aside anything for savings you re probably in a tax bracket that makes tax free municipal Bonds attractive financial advisers say. Michael s. Appelbaum first vice president at Shearson Lehman Hutton in new York City advises wage earners to balance these Safe investments with higher yielding taxable investments. Municipals he Points out Are backed by the taxing Power of cities and states and Are among the safest investments around second Only to . Government Bonds. If you re in that top combined bracket and find an investment paying 9 v2 percent you la end up with Only 5.8 percent in your pocket after paying out Federal and state taxes on the investment. In contrast a municipal Bond might pay you 7 or 8 percent but its free of both Federal and state taxes. When choosing a Bond Appelbaum recommends looking at other factors besides the yield percentage. If you need a Bond you can Cash in within a few years instead of letting it mature for 10 or 20 years you la have to give up some yield. Appelbaum suggests consulting with your accountant financial adviser or broker when picking Bonds so they can recommend purchases based on your needs. Are the Bonds to be a gift Are they for your children a education when do you need or want your principal Back do you need income to live on spend or enjoy or Are you in a position to defer current income and take a big Lump sum when the Bonds mature Troy win to vice Orioli to a if offal lion Quot Quot Quot Newton of Ibel award overturn of t by court a Pago 5 Gules related stories 1 on pages 2, 3, i 16. 17 and 28 i0 8693 a Gulf a Burden sharing sought r i i i j �?�.�. A it.7 7, -i.-n. Apo ,.  pc  a. To Utah. 1 7. .77,a v. Quot a a 7,t n1 w,7, Ltd t "�?~1 a Al a tx.l.l.r.1  i in. It ill i i Al in. I a it it. Himl spun 10 �h1 if of kit a  ii  a to i  la a . I k a Quot 1 left if a  it a Lelia a it or la j Mu-1 a. ,1 ill is. 1 Hilli i i1i. In mfg. . Lin d let i. In , if i lips. 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Us  us if Spuul ii Ppd Dun 01 in  Jef Nult to bunt Fliehr to i j or i i Korynt i m in Utkov on Back pay Navy chaplains reach sailors via a holy he of circuit in med i a Page 9 very Day can make a world of difference in your life in a world that never takes a Day to rest every Day can make a world of difference. A Day can mean the difference Between a Campaign and a Victory. A budget and a budget Cut. A revolutionary idea and a revolution. The stars and stripes has All the news it takes to keep you on top of the world s events. And a subscription to the stars and stripes can assure you that you la never fall a Day behind. Call one of our circulation offices today listing on Page 11 for your subscription to the stars and stripes. Or write to the staff attn sales promotion Apo 09211 the stars and stripes a we can make a world of difference in your life. Every Day