Beer healthy for European economy

BRUSSELS - Europe is the most important beer producer in the world, according to a new study.

The study, conducted by accounting firm Ernst & Young, also highlights the importance of the brewing sector's contribution to the European economy. The sector had a turnover of around €57.5 billion or the equivalent to the GDP of the Polish or Austrian economy in the last quarter of 2004.

Of the seven largest brewers in the world, four are European while more than 3,000 European small and medium enterprises in the brewing industry.

"Many of us enjoy a drink of beer, but few realise how significant Europe's beer sector is in contributing to the wider economy," said British liberal MEP Graham Watson at the launch of the study.

"At a time when attention in the EU is focused on ways to generate employment at home and develop market leaders in the global economy, the study offers confirmation of a European success story," he added.

"With such an impact on wealth and job creation in Europe, the brewers can help us deliver on the Lisbon goals in terms of competitiveness and economic prosperity," said the European brewery association in a statement.

According to the study, taxes on beer consumers and producers brings in €38.8 billion to state revenues.

With regards to employment, the study says that of all those employed in the EU member states, 1.2 per cent owe their jobs directly or indirectly to the production and consumption of beer.

European breweries provide jobs for 164,000 people, while 2.6 million jobs can be attributed to the brewing sector.

Sale of beer in the hospitality sector and through retailers generates a large share of the jobs with some 2.1 million jobs in pubs, restaurants and shops.

The study focused on the 25 member states of the EU along with Norway, Switzerland, Croatia, Bulgaria, Romania and Turkey.