Bolkestein pledges to end distortion on cross-border alcohol prices

Date: 19/09/02

By Peter Chapman

TAX Commissioner Frits Bolkestein has pledged to brew up a new plan to tackle distortions in the EU drinks market.

The move comes after the Dutchman's colleagues gave the thumbs-down to a shake-up of excise duties on beer and wine.

Under the scheme, Bolkestein wanted to eradicate big differences in duties from one country to another that distorted the EU's single market by encouraging bargain-hunting shoppers to cross borders and stock up on cheap drinks.

But fellow commissioners advised him that France, which would have to scrap its zero excise duty rates for wine, and Germany, which would have to increase beer taxes, would never accept the plan.

Bolkestein told the Parliament's economic and monetary affairs committee: 'There was an orientation debate - and opinions were varied, in particular because of the taxation on wine.

However, he insisted: 'I will study it again and, when I have, I will come up with a proposal.'

The commissioner said he is bound to target distortions in the EU tax system - such as glaring differences between neighbouring Britain and France, and Sweden and Denmark.

He said the EU's rulebook also calls on member states to vote unanimously to agree to end the distortions.

'There are very clear distortions. Article 93 of the Treaty engages the Commission to do something about that and harmonise.'

European Commissioner for the Internal market, Frits Bolkestein, has pledged to brew up a new plan to tackle distortions in the EU drinks market.