WRITTEN QUESTION P-2476/00

by Piia-Noora Kauppi (PPE-DE) to the Commission

(12 July 2000)

Subject: Finnish and Swedish derogations excise rates on alcohol

The Commission's report on the Nordic derogations concludes with the words the Commission would urge each of the Member States concerned to take the necessary steps in order to prepare for a smooth transition to the application of the general rules in force, at the latest by the date of expiry of their derogation mldr. The necessary steps are obviously

the reduction of the high excise rates, although, interestingly enough, the report never states this in black and white. The sole justification for the continued derogations is the enormous difference in rates across borders and, more importantly, the need for the high rates to be reduced in conjunction with the phased removal of import restrictions.

Does the Commission find that the current rate differentials are unsustainable within an internal market? If so, what measures is it going to take to remedy the unsustainability? Will it propose, in its report on the operation of the minimum rates (under Directive 92/84/EEC)(1), that the high rates should be reduced?

Article 93 of the EC Treaty relates to the harmonisation of indirect taxation to the extent necessary for the establishment and functioning of the internal market. Is not this Article relevant for the consideration of the Finnish and Swedish derogations?

The Commission's report on the extension and phasing-out of the derogations for the Nordic countries concludes that the Nordic countries should make the adjustments necessary to allow the intra-EU personal import restrictions to be lifted. Am I right in assuming that the adjustments required are the reduction of excise rates?

If the Nordic countries do not make the necessary adjustments, can the Commission guarantee that the derogations will expire on 31 December 2003?

Does it accept that, if the high excise rates in the Nordic countries are not gradually reduced as the import restrictions are phased out, the distortion of the internal market will increase? If so, is a measure that increases distortions actually justified? Does it help towards the attainment of the objective set out in Article 93 of the EC Treaty?

(1) OJ L 316, 31.10.1992, p. 29.

Answer given by Mr Bolkestein on behalf of the Commission

(7 September 2000)

As the Commission has indicated in the report mentioned by the Honourable Member, the derogations were granted in order to enable the Member States concerned to adapt their policy gradually to the full requirement of the internal market. It is up to these Member States to determine the nature of any measures to be taken in parallel with the dismantling of the restrictions for travellers. In any case, the Commission does not intend to propose any further extension of the derogations beyond the end of 2003, even if it would appear that these Member States would have omitted to take the necessary measures to adapt.

The question of the level of the excise duty rates applied by the Member States will be treated in its broader context in a report that the Commission will submit at the beginning of 2001. The report will take into account the proper functioning of the internal market, competition between the different categories of alcoholic drinks, the real value of the rates of duty and the wider objectives of the EC Treaty. The Commission does not want to prejudge the conclusions of this report.