On the eve of the hearings of the new Commissioners in the European Parliament, we believe it is an opportune moment to test a number of proposals to improve the proper functioning of the Single Market. To-date, there is no effective means of appeal but instead long and expensive court cases to deal with breaches against Single Market rights.
Our most recent example is from Greece, and it all started in 2010 when we discovered that following a huge increase of excise tax on spirits, certain categories of Greek spirit - tsipouro and tsikoudia - were benefiting from the reduced rates of excise tax (50% of the standard rate). However, Directive 92/83, Article 23(2), allows these reduced excise rates only for Ouzo.
It was later discovered that even lower rates were being applied when tsipouro was traded in bulk. There is no EU basis for such so-called super reduced rates.
A formal complaint was submitted by spiritsEUROPE to DG TAXUD in which we set out our concerns regarding the unsanctioned tax preferences. As a consequence, the European Commission started infringements proceedings against Greece.
In July 2019, the European Court of Justice published a judgement in which the court rules that indeed, Greek legislation providing for the application of a reduced rate of excise duty on tsipouro and tsikoudia produced by distillers and a reduced rate of excise duty on tsipouro and tsikoudia produced by small distillers is contrary to Union law (namely Directives 92/83/EEC and 92/84/EEC).
We are satisfied by the outcome of this process, and we want to thank the Commission for standing in defence of the Single Market. But everyone will agree that taking 9 years to deal with a Single Market breach is far too long!
There is no efficient complaint system for companies to turn to when the Single Market is not functioning, not implemented or not recognised. We would like to echo the proposal made by FoodDrinkEurope suggesting a possible iniative. Why not creating an independent enforcement body – an Ombudsman? Agency? Independent Authority? – which, free from political pressure, would devise tools to ensure the proper implementation of regulation in all Member States; and where companies and consumers would be able to report complaints and discuss Single Market breaches, whether in terms of free circulation of people, services, capitals or goods.
We invite MEPs to test this idea at the next hearings with future Commissioners!
