European beer sector can help ailing EU economy

According to a recent report by EY (formerly Ernst & Young) and Regioplan, the EU’s beer sector is responsible for creating 2 million jobs – equal to 1 % of all EU jobs.

Following a very challenging three years at the start of the economic crisis, where beer consumption declined by 8 % across the EU, the beer market is now picking up with a modest increase of 1 % over two years. Production has also increased by 2 % as the thirst for European beer grew not only within the EU but also outside, with the EU brewing sector’s annual trade surplus reaching EUR 3 billion.

With brewing showing its potential to contribute to the EU’s growth, employment and trade ambitions, it is however important that this potential be supported, not hindered. Nearly 15 % of the jobs created by beer in the brewing value chain, primarily those in pubs, bars and cafés, have been lost since 2008 due to increasingly difficult trading conditions and increases in VAT rates and excise taxes in 14 member states since 2010.

However, some governments have started to recognise the contribution of the brewing industry to EU economy and job creation and the need to support this –the UK and Denmark, for instance, have actually reduced beer taxes in 2013 to help solve wider economic problems.

Brewing is very much a touchstone for the EU’s economic performance as a whole and, as a truly cross-sectoral industry, should be nurtured and supported by decision-makers across the continent.