Opinion of the Economic and Social Committee on the "Proposal for a Council Directive amending Council Directive 92/12/EEC of 25 February 1992 as regards temporary quantitative restrictions for products subject to excise duties brought into Sweden from other Member States"

(2000/C 268/02)

On 26 May 2000 the Council decided to consult the Economic and Social Committee, under Article 93 of the Treaty establishing the European Community, on the above-mentioned proposal.

The Section for the Single Market, Production and Consumption, which was responsible for preparing the Committee's work on the subject, adopted its opinion on 7 June 2000. The rapporteur was Mr Wilkinson.

At its 374th plenary session (meeting of 12 July 2000), the Economic and Social Committee adopted the following opinion by 97 votes to one with four abstentions.

1. Introduction

1.1. One of the fundamental principles of the Internal Market is that citizens have the right to transport any goods bought for their own use and tax and duty paid in any Member State throughout the European Union without paying further VAT and excise duty. This includes goods that are subject to excise duty, such as alcohol and tobacco. There is no limit on quantity provided that the goods are for personal use and are transported by the citizen concerned.

1.2. In 1996 a temporary derogation was given to Denmark, Finland and Sweden in Directive 96/99/EC to allow them to apply restrictions on the quantities of alcohol and tobacco brought onto their territory from another Member State. For Finland and Denmark this derogation will expire at the end of 2003; for Sweden the expiry date is 30 June 2000, but this date is subject to a review mechanism.

1.3. The Swedish Government has now requested an extension of the derogation to the end of 2003. The request is based on the need for time to adapt Swedish alcohol policy but includes a commitment to increase the quantitative limits progressively.

2. Comments

2.1. As in the recent Opinion concerning beer imports into Finland(1), the Committee regrets any extension of the period during which consumers are denied some of the benefits of the Internal Market. Here also it is clear that the need to seek further derogation is essentially caused by significant differences in consumer prices for the products concerned. While differing standards of living and other factors undoubtedly affect prices, it is clear that by far the greatest factor is the high excise duty rates applied in Sweden. In saying this, the Committee notes that the Swedish alcohol policy can claim at least some credit for the relatively low incidence of alcohol related illnesses in Sweden.

2.2. As the Committee commented and recognised in the case of Finland, it is for the Swedish Government to set its own excise rates. However, the Committee appreciates that this proposal will avoid the need for any further derogations by conducting education and information programmes and by tackling the high rates of excise duty.

2.3. The Committee shares concerns over public health, cited by the Swedish Government as the reason to continue to restrict the free movement of goods. However, all the evidence is that while high prices may reduce overall consumption, they do not deter heavy drinkers. Moreover, they lead to increased smuggling and illegal production. It supports the Commission's comment in the explanatory memorandum that alcohol abuse should be combated by preventative and educational measures and by focusing on problem drinkers rather than by relying on general measures that penalise all consumers.

2.4. The new alcohol programme that the Swedish government must now introduce might provide useful examples for other Member States when they consider, possibly in the framework of the proposed EU policy on this, how to reduce their problems of alcohol abuse.

3. Conclusions

3.1. The Committee supports the Commission's recommendation that the derogation should be extended to allow more time for the Swedish Government to make necessary changes to its alcohol policy. It particularly welcomes the clear programme, agreed by the Swedish Government, for a phased increase in the amounts that Swedish consumers may bring into their country from other Member States.

3.2. It also welcomes the clear decision that the basic Internal Market freedom for the movement of goods will apply in full from the end of 2003.

Brussels, 12 July 2000.

The President

of the Economic and Social Committee

Beatrice Rangoni Machiavelli

(1) OJ C 204, 18.7.2000.