Minimum price for alcohol faces EU legal threat
Anti-European hackles have been raised in the UK and Scotland following a legal threat from Brussels, which challenges Scotland’s First Minister Alex Salmond’s law to impose a minimum price on booze – a plan which Mr Cameron had hoped to follow in England and Wales.
At the end of September 2012 officials in Brussels told Scottish ministers they had to withdraw legislation to impose a GBP 0.50-per-unit price (EUR 0.62) on alcohol because it was "not compatible" with the EU Treaty.
Spain, Italy, Portugal and Bulgaria are also believed to have concerns about Scotland’s plans as they export drink to Britain.
The European Commission has now ordered the British Government to review the Scots’ proposals, as Britain – rather than Scotland alone – is a member state of the EU.
Although the European Commission has merely sent out a " detailed opinion", it deals a blow to the British Prime Minister’s own aim to curb the drinking habits in England and Wales.
The "detailed opinion" has not been made public, but it’s believed to focus on Article 34 of the EU Treaty, which relates to imports and prohibits "quantitative restrictions and all measures having equivalent effect between member states".
Apparently, the European Commission thinks that a "different mechanism" to reduce alcohol consumption could be used, such as an increase in excise duty – something the BBPA would likely oppose.
The Scottish Government is facing a separate legal hurdle from the Scotch Whisky Association. The industry body claims that minimum pricing is in breach of the UK’s EU treaty obligations, and exceeds the Scottish Parliament’s powers. An initial hearing is due on 23 October 2012, it was reported.
A consultation on Westminster’s minimum pricing plans is due to start in the coming weeks and is expected to finish by Christmas.
If introduced, minimum pricing would raise the price of a bottle of red wine to at least GBP 5.25 (EUR 6.50), while a standard blended whisky bottle would be GBP 14 (EUR 17) and a crate of 24 standard lagers would be GBP 21.65 (EUR 27), UK media report.