Brussels, 31/10/2001 (Agence Europe) - On Wednesday, the Permanent Representatives of the Member States reached an agreement on the directive setting a minimum and maximum rate for excise on tobacco. The political agreement may be formally confirmed by Tuesday's Ecofin Council, except if ministers decide to adopt the directive after the Parliament has given its opinion (consultation procedure). The text taken on board provides for the introduction of a minimum duty of 60 euros for one thousand cigarettes from 1 July 2002, with a transition period until end 2004. The maximum rate will be 64 euro from 1 July 2006. Spain and Greece, who have blocked the decision to date, have obtained a transition period until end 2007 for application of the 64 euro threshold. The Commission initially proposed a threshold of 70 euros. In practical terms, Spain, Greece, Luxembourg, Italy and Portugal are concerned by this decision. The other Member States already apply an excise duty higher than 60 euros. Coreper also reached an agreement on a new definition of cigars, to apply from 1 July 2002 and will exclude all products resembling cigars but composed of cigarette tobacco. Germany, the main producer and consumer of this form of tobacco, obtained a transitional period until December 2007, in order to allow its industry to adjust. The directive, moreover, fixes a maximum excise amount of 95 euros for one thousand cigarettes. The Member States where total excise duties exceed 95 euros (in practice, Sweden, where the basic price of tobacco is the highest), may be dispensed from the rule that excise should cover at least 57% of the prince of the product. At the end of the day, the total maximum rate of excise duty will be 101 euros in 2006. The Commission is preparing a similar proposal, for early 2002, on alcohol excise.