On the basis of an analysis of general declarations and specific proposals concerning EU environmental tax policy, it is clear that the EU has no clear idea of how such a policy should be developed. Lacking a thorough debate on this issue, there is no detailed policy strategy and all initiatives taken are, in fact, isolated proposals that do not find a place within a larger whole. It is argued here that absolute priority should be given to the formulation of a concrete EU policy vision for environmental tax policy where the protection of the environment, rather than the creation of new jobs or financial revenue, is the central goal. The elaboration of a general EU legal framework on the basis of which EU instruments for environmental tax policy can be developed, proposed and adopted is required. Such a framework should be based on three pillars: (i) an EU conducted 'cleanup' of any environmentally unfriendly fiscal regulations currently applied in regional and national legislation; (ii) EU application of fiscal incentives for the environment; and (iii) EU application of environmental taxes. CCC 0961-0405 /96/ 0401 14-05 0 1996 by John Wiley & Sons, Ltd and ERP Environment.