On Tuesday 12 March, European Finance Ministers ruled that the three excise duty texts applicable in the EU (see EUROPE 12124/12) were not yet ready for adoption and decided to refer them back to the technical level.
The meeting was nevertheless an opportunity for the Romanian Presidency of the Council of the EU to sound out the ministers on several possible compromises with regard to the Directive on the structures of excise duty on alcohol and alcoholic beverages (see EUROPE 12211/15).
Discussions on the possibility for Member States to exempt from excise duty or to apply reduced rates for ethyl alcohol distilled from fruit by private individuals for personal use have revealed a whole series of particular interests.
Starting with Romania, which, although it currently holds the Presidency of the Council of the EU, recalled the emblematic role of each culture of these alcohols. After detailing Romanian traditions in this area and even offering ministers a traditional alcohol from his country, Minister Eugen Orlando Teodorovici clearly supported this exemption, which he said made it possible to "keep the traditions alive".
And like the Romanian minister, everyone tried to defend their customs and traditions. On the annual quantitative limit to be set, the Presidency had suggested 175 litres per year. While Austria and Hungary want a high threshold of around 100 litres per year, others want as low a threshold as possible, such as Estonia, Sweden and Ireland. Bulgaria also suggested a limit of 30 litres.
The European Commissioner for Taxation, Pierre Moscovici, has expressed concern about this provision, due to the potentially negative health risks and has also argued for the lowest possible limit.
The new alternative optional method for fixing the amount of excise duty on wines, other fermented drinks and intermediate products taking into account the alcoholic strength and not by reference to the number of hectolitres is also criticised.
Italy, Spain, Germany and Portugal indicated that they could not accept this provision without a prior assessment of the impact on the market and competition.
On the other two other texts, namely the Directive on general arrangements for excise duty and the Regulation on administrative cooperation, the ministers were unable to reach agreement on Tuesday.
Here, the rules of the Directive on general arrangements for excise duty, applicable to the acquisition and transport from one Member State to another by private individuals of excise goods, are controversial.
The text proposes to strengthen control powers by reversing the burden of proof and placing the burden of proof on the consumer rather than on the customs officer to prove that there would be no abuse in the use of excise products.
Belgium pointed out that this provision was not included in the Commission's initial proposal and that no impact assessment had been carried out. A study has recently been launched on this issue, but has not yet been completed and, according to the Belgian minister, the results should be awaited before taking a decision. A suggestion supported by the Czech Republic, Poland, Luxembourg and Spain.
On the other hand, Sweden and France, which support the proposal, stressed the urgency of resolving this issue as soon as possible.
The Romanian Presidency therefore intends to continue the technical work on these three dossiers and is still aiming for a political agreement ('general approach') before the end of its mandate. (Original version in French by Marion Fontana)