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The credit card giant faces daily fines unless it changes its international fee structure, says the EU Competition Commissioner MOREINFO: * EU gives Mastercard ultimatum * EU adopts contested CO2 emissions proposals * Germany's business morale takes a hit SCRIPT: Mastercard under fire in Europe - the credit card giant has six months to change its international fee structure or face daily fines. The EU Competition Commissioner Neelie Kroes says MasterCard's fee on international transactions breaks EU competition laws. (SOUNDBITE) Nelly Kroes, European Competition Commissioner saying (English) : "Mastercard's MIF, a charge levied on each payment at the retail outlet when the card payment is processed, inflated the cost of card acceptance by retailers without leading to any advantage to consumers or retailers. On the contrary, consumers foot the bill, so to say, as they risk paying twice for payment cards; once through annual fees through their bank and the second time through inflated retail prices, given that retailers set their prices according to all costs, including mastercard's interchange fees." The ruling is expected to affect how national watchdogs in some 12 EU states will handle domestic card fees. Mastercard said it will appeal the decision. /// The battle between the European Union and European car makers heats up. The EU adopted fiercely contested proposed legislation on carbon dioxide emissions from cars - with steep fines for manufacturers who fail to comply. The plan will phase in fines from 2012 on manufacturers whose fleets exceed an average of 120 grams per km of the main greenhouse gas blamed on global warming. But car producers denounced the plan, saying it was biased against car makers of heavier luxury vehicles. /// Germany's business morale is the worst it has been since January 2006. The Ifo economic research institute said its business climate index, based on a monthly poll of 7000 firms, registered an almost one point dip and leaves Europe's largest economy looking weak going into 2008. But Bank of America economist, Dr. Holger Schmieding, said that a recession in Europe was remote. SOUNDBITE: Bank of America economist, Dr. Holger Schmieding saying (English):, "Almost all indicators are still at above average levels. Even the surveys, even expectations are not really negative. What we are seeing is a significant slowdown from above trend growth to below trend growth, but I don't think this is a prelude to recession. This is more likely a mid-cycle correction followed by a new upswing." Nevertheless, the euro fell to session lows against the dollar after the release of the information and Germany's DAX leading share index extended losses. /// The FTSEurofirst 300 was in negative territory as banks remained under pressure after Morgan Stanley announced huge losses as well as a $5 billion investment from a Chinese government fund. UBS, Barclays and Halifax Bank of Scotland were all down in afternoon trade. Investors remained cautious ahead of results form the Federal Reserve's $20 billion money-market stabilisation effort, part of a coordinated global plan by central banks to ease tense money markets. Stefanie McIntyre, Reuters