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Europe Daily Bulletin No. 7889
Contents Publication in full By article 16 / 74
GENERAL NEWS / (eu) eu/fraud/tobacco

Germany and Spain joint Commission complaint against Morris and Reynolds

Brussels, 25/01/2001 (Agence Europe) - Germany and Spain announced, on Thursday, that they are joining the complaint made by the European Commission against the American cigarette manufacturer Philip Morris and RJ Reynolds for contraband on the Community market (see EUROPE of 6/7 November, p.9). With Italy, which announced the same decision last week, three Member States are now associated with this complaint, while the European Commission is pressuring the other Member States for them to also join, and this as quickly as possible. "The Member States have a double interest in acting, to recuperate the excise and to defend the interests of the European Union", underlined, on Thursday, a spokesperson from the Commission, while adding that "if the Member States should join the Commission, they should do so quickly."

The Member States which, in case the cigarette manufacturers are condemned, want to recuperate their losses on the cigarettes sold in contraband (excise duties and VAT) must join the Commission action, admit lawyers in several Member States. It seems, but all the lawyers are apparently not in agreement, which for reasons of procedure the maximum time given to join the court action by the Commission is 26 February. The Commission is pushing the Member States to declare their support even before this date, underline diplomatic sources.

On these two points, as with the possibility for the Commission to complain in their name and over a few aspects of the problem (excise and/or VAT), most of the Member States called for clarification from the Commission. On the other hand, none has questioned this action. After explanations given last week to the Permanent Representatives of the Member States (Coreper), France, which made the demand, renounced calling for the inclusion of this question in the agenda of the Ecofin Council. Bilateral talks between the Commission and the Member States continue to enlighten certain points. Some, less affected by contraband, could nevertheless join the complaint to "mark their political support".

Moreover, the European Commission assures that it is not at all concerned that Philip Morris and RJ Reynolds challenge its right to complain against them. The two cigarette manufacturers call on the European Court of First Instance to say that "The European Commission lacks the authority under EU Treaties and law to bring this lawsuit."

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