Economic concerns grow over tobacco restrictions

Some member states say that changes would cause financial hardship for workers.

MEPs are today (30 May) debating new restrictions on the sale and marketing of cigarettes, as concerns grow louder about their impact on the economy.

Linda McAvan, a British centre-left MEP who is guiding the legislation through the European Parliament, wants the rules to go further than the European Commission proposal by banning the use of branded logos on packs and forbidding internet sales. But amendments proposed by centre-right MEPs, particularly those from eastern and southern Europe, and inspired in part by fears about the economic impacts in a time of recession, could gut the measure.

Many of these amendments echo concerns raised by member states. Earlier this month (17 May), the agriculture ministers of Bulgaria, the Czech Republic, Hungary, Poland, Romania and Slovakia adopted a joint declaration criticising the Commission’s proposal to revise the tobacco products directive, claiming it would harm economies and hurt thousands of families that depend on tobacco cultivation or marketing for their living.

They argued that the proposed requirement for 75% of cigarette packs to be covered by graphic pictorial warnings would harm brand-owners and increase counterfeiting, depriving national coffers of funds that would flow instead into the black market. Any such measures could be entertained only if the EU established “support instruments for producers which would compensate for losses incurred due to the implementation of the directive”, they said.

Athanasios Tsaftaris, Greece’s agriculture minister, told his counterparts at the agriculture council on 13 May that the Commission’s proposal to ban flavourings in cigarettes would be devastating for Greek families who earn a living from growing Burley flavouring for cigarettes. Spain, Italy and Cyprus are sympathetic to the Greek objection. The issue may be raised in today’s competitiveness council.

Change of emphasis

Tonio Borg, the European commissioner for health, said this week he is concerned that economic concerns are starting to dominate the debate. “This is a predominantly health matter. I have no problem discussing it elsewhere as well, but the main decisions should be taken in the health council,” he said.

“I do not exclude that if we reach our target of reducing the number of smokers by 2% over the next five years there would be some economic consequences, but at the same time there would be positive ones which I think would be even more.”

Other member states, including France, Belgium, Finland, Ireland and the UK, have been strongly supportive of the Commission’s proposal. Some of them want the EU to go further. The Irish government announced on Tuesday (28 May) that it will enact a ban on brand logos on cigarette packs – the first EU country to do so. The positions of Germany and Italy are not yet clear. Borg is to visit Berlin and Rome in the coming weeks.

McAvan said she believes the economic objections being used by MEPs and member states are coming from the tobacco lobby. “There are exaggerations that are being put out there,” she said. “We have to set the economic costs against the health costs of smoking.”

The Irish presidency of the Council of Ministers is hoping to secure a general agreement between member states at the health council on 21 June, but if no agreement can be reached an additional health council may be scheduled for October. The Parliament’s environment committee will vote on 10 June, with a plenary vote envisaged in September.

On Wednesday (5 June), the Commission will try to allay fears that plans for large pictorial health warnings would increase cigarette counterfeiting. It will adopta package of measures to strengthen protections against cigarette smuggling on the EU’s eastern border.