spiritsNEWS

spiritsNEWS - February 2025

With the start of 2025, the European Commission has initiated efforts to enhance the Single Market’s efficiency. On 3 January, the Commission launched a "call for evidence" to inform a new Single Market Strategy, set for finalization by June 2025. This initiative follows key reports from figures such as Mr. Letta and Mr. Draghi and aims to address persistent regulatory and administrative barriers hindering cross-border trade and investment.

We need to address key challenges. The Single Market, designed for seamless trade and mobility, continues to face fragmentation due to varying national regulations. Small and Medium Enterprises (SMEs) are particularly affected by complex authorization processes and bureaucratic hurdles. The ongoing consultation seeks input on:

• Barriers to the free movement of goods and services.
• Regulatory and administrative challenges.
• Strengthening enforcement and compliance within the Single Market.

As the consultation unfolds, we strongly support a more integrated Single Market and highlight the challenges faced by the alcoholic beverage sector due to inconsistent national legislation. These national measures undermine the proper functioning of the Single Market and threaten the core principle of harmonized EU rules.

Several national legislative initiatives, if left unchecked, could create costly and highly disruptive barriers to the free movement of goods. We call on the EU Commission to adopt a more rigorous approach in reviewing and challenging such unilateral actions from Member States.

A key concern is digital labelling, which could help standardize information while catering to local consumer needs. However, conflicting national requirements—such as those under the new Packaging and Packaging Waste Regulation—could complicate this effort, particularly with restrictive Deposit Return Scheme (DRS) labelling rules.

In the consultation, we have highlighted examples of national barriers, such as:

• Ireland: In June 2022, Ireland proposed mandatory Health Warning Labels (HWLs) on alcoholic beverages. Although the Irish government plans to implement this by May 2026, the European Commission’s internal assessment has suggested that the measure is disproportionate. The Commission has yet to take definitive action, but we urge the Irish government to align its approach with the broader EU framework.
• Finland: Finland’s restrictive approach to alcoholic beverage sales, with state-run monopolies dictating terms and limiting what can be sold, has raised concerns. Most recently, the country imposed discriminatory measures that unfairly favour domestic products over EU imports. The European Commission is investigating this situation, and we urge a swift and decisive response to restore a non-discriminatory approach.
• Sweden: Sweden's state-owned monopoly on alcohol sales has taken a controversial turn with new rules requiring suppliers to submit carbon data, adding significant administrative burdens. This disproportionately impacts small producers and threatens to violate EU competition and free movement rules. We call on the Commission to evaluate this measure urgently.

As the Commission prepares its final report, it is crucial to ensure regulatory harmonization, transparency, and reduced barriers for businesses. Innovative approach such as digital labelling could be a game-changer, but only if national regulations align with EU standards to avoid undermining the very essence of the Single Market: the free movement of goods, services, and people..

As we look ahead to June 2025, the European Commission's strategy could shape the future of the Single Market for decades to come. Now is the time for businesses, workers, and policymakers to come together to support a truly integrated, barrier-free Europe.