Brewers of Europe send clear message to French government
Ho, ho, that’s a tough one. The Brewers of Europe, an industry body not known for its foam-at-the mouth rhetoric, recently wondered aloud if France is an EU member state, thus expressing its shock over the French government’s anti-industry, anti-EU ministerial stance.
As reported, France is planning a 160 percent hike in beer excise, a move which has already received strongly worded protests from the Belgian Brewers Association.
On 6 November 2012 the Brewers of Europe issued a statement saying that "in the course of the French parliamentary debate on a proposed French law to raise the tax on beer by 160 percent, the French Minister of Budget insinuated that the measure would principally affect foreign, multinational brewing companies, which did not, in his eyes, merit any sort of compassion."
"I really hope the Minister did not mean what he said in the Parliament", commented Pierre-Olivier Bergeron, Secretary General of The Brewers of Europe. "If this were to be the case, then I wonder whether the minister realised the falsity and discriminatory character of the picture he painted."
Mr Bergeron argued that "a substantial part of the French beer market is held by three brewing companies that are historically, deeply rooted in Europe and have invested locally in France, also in French brands. Purchasing raw materials in France, operating breweries in France and selling their beers through French shops, cafés and ‘brasseries’, these companies are also making a substantial contribution to the 65,000 French jobs and EUR 2.6 billion in government annual revenues that beer creates in France."
Venting his anger, Mr Bergeron, who is French, added: "One wonders, on top of the provocation to the brewing sector beyond the French borders, whether the minister should not keep in mind that France, until further notice, is a Member State of the European Union."
Mr Bergeron had said previously that "this 160 percent tax hike is a kick in the teeth for a European brewing sector that has suffered greatly in the crisis, yet fought to survive and continued to invest in order to help play a positive role in the implementation of the EU’s Growth Pact."
The law to raise beer excise has already passed though France’s National Assembly and is now being discussed in the Senate. At the time of writing, the Senate had not cast a vote. It is expected for 13 November at the earliest. As we understand the political process in France, parties represented in the Senate can submit amendments. Furthermore, as the beer excise hike is part of a much wider draft law to generate revenue, it could very well happen that the whole proposal will be sent back to the National Assembly for review.
Sadly, this being Europe, not all brewing industry bodies think and act alike, obviously taking their cue from Europe’s quarrelsome politicians. On 31 October 2012 the British Beer & Pub Association issued a tersely worded comment on the proposed French excise hike: "It looks as if French beer tax will increase from six pence per pint, to around 16 pence. It’s a hefty increase, but it still leaves French beer duty at around one quarter of the rate here in the UK."
What did the BBPA mean? That brewers in Britain are worse off , so continental brewers should stop being such whingepots and get on with it?
Seems like a Brewers’ United Front in Europe is still a long way off.
