• A tax on UK air passengers was attacked by tour operators yesterday who said they planned a legal challenge which could force the government to repay holidaymakers and airlines more than £2 billion. Britain's Federation of Tour Operators (FTO) said it would challenge the legality of Air Passenger Duty (APD), adding if its high court bid is successful the British government would be forced to scrap the tax.

• Italy's Romano Prodi looked likely to garner enough support to win a vote of confidence this week and remain prime minister, with his rebellious leftist allies brought into line by the prospect of the right returning. Coalition partners who pushed the nine-month-old government to the brink of collapse last week vowed to avoid more actions that could bring conservative Silvio Berlusconi back to power.

• Poland headed for a showdown with the EU yesterday, rejecting demands by the bloc's executive that it halt a planned highway through a nature conservation area due to environmental concerns. The European Commission said unless construction was stopped it would ask the EU's highest court to order a halt, but Polish Environment Minister Jan Szyszko said he was ready to go to court.

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