EU agrees to keep tobacco subsidies

The European Commission yesterday rejected proposals to end subsidies to tobacco producers, saying that 200,000 workers are dependent on the funds. The decision provoked anger from the anti-smoking lobby, and caused divisions within the commission itself.

Padraig Flynn, the social affairs commissioner, has called for abolition of the subsidies, arguing that the EU should not be supporting trade which leads to tobacco-related deaths. While the EU spends pounds 800m a year to support the producers, mostly in Italy and Greece, it is only spending pounds 12m a year on measures to combat smoking, Mr Flynn said. He reminded his colleagues on the commission that smoking was now the biggest single avoidable cause of death in Europe.

However, the majority of commissioners supported a proposal from Franz Fischler, the agriculture commissioner, who said stopping the subsidies would directly affect 135,000 families putting 200,000 people out of work.

Mr Fischler argued that stopping the funding would not stop people smoking. "Given that approximately 77 per cent of tobacco consumed in the EU is imported, the regime's abolition would merely lead to 100 per cent of EU tobacco demand being met by imports," a commission statement said.

The commission did decide to reform its subsidies programme by targeting aid on higher-quality tobacco. Proposals to consider strengthening cigarette packet health warnings were also agreed, as were proposals to consider reducing tar and nicotine content.

"It's a stepping stone in the right direction but it doesn't go anywhere near as far as we would have preferred," said Andrew Hayes, of the Association of European Cancer Leagues.

Rejection by the commission of Mr Flynn's call for a complete phase-out of the subsidies represents a victory for the international tobacco industry. Phillip Morris, the American giant, mounted what EU officials described as an "incredible" campaign. It is understood the company enlisted a number of former agriculture commissioners to put its case.

While the industry may face new anti-smoking curbs through stricter labelling, and eventually measures to impose new limits on cigarette tar and nicotine content levels, tobacco-growing subsidies will continue to benefit the manufacturers.