Brussels, 27/05/2004 (Agence Europe) - In Brussels on Wednesday, the Commission presented a report on the functioning of the Community system of minimum excise rates applicable to alcohol and alcoholic drinks, with a view to a broader debate on the subject. This report looks at the effects of the current system on the smooth running of the internal market, competition caused by differences in excise levels between various types of alcoholic drinks, the real current value of minimum rates set in 1992 and the objectives of the EU Treaty in general.
The Commission believes that greater convergence is needed between the excise rates applied in the various Member States, in order to reduce competition distortion and fraud. However, given the massively divergent opinions of the Member States on the appropriate level of minimum excise, and given that any change would require a unanimous agreement, the Commission is not making any proposals at this stage. It does, however, hope to open a broad debate within the Council, the European Parliament and the Economic and Social Committee. Depending on the outcome of this, it will decide whether or not there are grounds for submitting proposals on all or some of the issues dealt with in the report.