Brussels, 24/10/2001 (Agence Europe) - After several weeks on internal negotiations, the European Commission has just recommended to Member States granting those candidate countries so requesting transition periods of up to three years after their accession before having to align their excise duties on cigarettes on those applied in the EU. Thus, according to the draft common position proposed by the Commission on Tuesday, Poland, Romania and Slovenia should be granted a two year transition period, following their accession, to comply with Community rules, whereas Bulgaria, the Czech Republic, Estonia, Lithuania, Latvia and Slovakia would have three years after their accession. The one condition, however, would be the immediate (i.e., before conclusion of negotiations on the "taxation" chapter) establishment of a precise timetable for the gradual and complete adaptation of the candidates' legislation to the acquis.
All candidate countries (except for Hungary, Cyprus and Malta) asked for more or less long transition periods to be able to maintain, for a certain lapse of time after accession, their current excise levels, which are considerably lower than the minimum rates applied in the EU. The candidates warn against any immediate implementation of European levels which, they say, would have as consequence a spectacular rise in prices (some of them refer to a doubling of the price for a packet of cigarettes), with all the social consequences that would incur and the disastrous impact on their public opinion that one may well imagine. The Commission therefore tried to propose an approach that took account of both the social considerations and the concern of the EU to guarantee the smooth running of the internal market and not encourage contraband in cigarettes between the new and old member countries. On this backdrop, it made a proposal with relatively short transition periods, together with a precise timetable.
On the basis of the Commission's text, it is now up to Member States to formulate the final EU negotiating stance that they will then put to the applicant countries at one of the next negotiating meetings, and in any case before the end of the year (as provided for in the road map). Thursday and Friday, moreover, there are to be deputy-level negotiating meetings, to which we shall return.