Sunday

20th Aug 2017

MEPs urge EU commission to end Philip Morris deal

  • EU states seized €460 million worth of cigarettes last year, counted in terms of lost tax revenue (Photo: HM Revenue & Customs)

The European Parliament has called on the European Commission to end its agreement with tobacco giant Philip Morris International (PMI).

Four hundred and fourteen MEPs voted against the deal in Strasbourg on Wednesday (9 March), 214 backed it and 66 abstained.

Thank you for reading EUobserver!

Subscribe now and get 40% off for an annual subscription. Sale ends soon.

  1. €90 per year. Use discount code EUOBS40%
  2. or €15 per month
  3. Cancel anytime

EUobserver is an independent, not-for-profit news organization that publishes daily news reports, analysis, and investigations from Brussels and the EU member states. We are an indispensable news source for anyone who wants to know what is going on in the EU.

We are mainly funded by advertising and subscription revenues. As advertising revenues are falling fast, we depend on subscription revenues to support our journalism.

For group, corporate or student subscriptions, please contact us. See also our full Terms of Use.

If you already have an account click here to login.

  • Michel Petite (r), a senior EU official, negotiated the Philip Morris deal before joining the private sector to lobby EU institutions on tobacco (Photo: ec.europa.eu)

The tobacco accord, which is to expire in July, made the EU and PMI into partners in the fight against cigarette smuggling. It was agreed 12 years ago and involved PMI payments of about €1 billion to the EU and member states.

The commission in its assessment of the deal on 24 February said it “effectively met its objective.” It added that changes in the market and legal framework cast doubt on its future relevance, however.

Parliament has no formal say in the matter. But in political terms, the commission would need strong reasons to defy the MEPs.

“The voice of parliament has to be heard now,” Spanish centre-left MEP Ines Ayala Sender told EUobserver after the vote.

She said that the parliament asked the EU commission to find ways to substitute PMI’s anti-smuggling resources in the coming years.

PMI told this website by e-mail that “what matters most is that the supply chain control measures contained within the agreement are continued”.

“The ongoing debate continues to be focused on opposition among parties pro- and against the renewal of the agreement, rather than on pragmatic solutions to win the real fight against illicit trade in the EU,” it said.

Belgian Green MEP Bart Staes said in a press release after the vote that it sent “a clear political message against renewing the PMI agreement”.

“This vote should serve as a shot across the bows to elements within the EU commission pushing for negotiations to begin,” he said.

The commissioner in charge of the PMI file, Kristalina Georgieva, told this website in Strasbourg on Wednesday, before the EP vote, that the commission is “very carefully listening to all arguments, from all stakeholders”.

MEPs split on tobacco deal with PMI

With less than five months until a deal with tobacco company PMI expires, MEPs and commissioner Georgieva discussed how to fight illegal cigarette trade after its expiration date.

EU states 'unlikely to block new tobacco deal'

Diplomatic sources from over half of the EU member states say they broadly back renewing an anti-smuggling agreement with tobacco firm PMI, which will expire in July.

Tobacco firms defend value of EU deals

With an EU anti-smuggling deal with Philip Morris due to expire, EUobserver talked to tobacco lobbyists from two competing firms that have similar arrangements.

EU cautious with German diesel plan

The European Commission welcomed the German carmakers' pledge to update software in diesel cars, but is waiting for details on how emissions will be reduced.

News in Brief

  1. Macedonia sacks top prosecutor over wiretap scandal
  2. ECB concerned stronger euro could derail economic recovery
  3. Mixed Irish reactions to post-Brexit border proposal
  4. European Union returns to 2 percent growth
  5. Russian power most feared in Europe
  6. Ireland continues to refuse €13 billion in back taxes from Apple
  7. UK unemployment lowest since 1975
  8. Europe facing 'explosive cocktail' in its backyard, report warns

Stakeholders' Highlights

  1. European Healthy Lifestyle AllianceDoes Genetics Explain Why So Few of Us Have an Ideal Cardiovascular Health?
  2. EU2017EEFuture-Themed Digital Painting Competition Welcomes Artists - Deadline 31 Aug
  3. ACCABusinesses Must Grip Ethics and Trust in the Digital Age
  4. European Jewish CongressEJC Welcomes European Court of Justice's Decision to Keep Hamas on Terror List
  5. UNICEFReport: Children on the Move From Africa Do Not First Aim to Go to Europe
  6. Centre Maurits CoppietersWe Need Democratic and Transparent Free Trade Agreements Says MEP Jordi Solé
  7. Counter BalanceOut for Summer, Ep. 2: EIB Promoting Development in Egypt - At What Cost?
  8. EU2017EELocal Leaders Push for Local and Regional Targets to Address Climate Change
  9. European Healthy Lifestyle AllianceMore Women Than Men Have Died From Heart Disease in Past 30 Years
  10. European Jewish CongressJean-Marie Le Pen Faces Trial for Oven Comments About Jewish Singer
  11. ACCAAnnounces Belt & Road Research at Shanghai Conference
  12. ECPAFood Waste in the Field Can Double Without Crop Protection. #WithOrWithout #Pesticides