DOCUMENT RETRIEVAL CODE = EUDOC. EUROPEAN UNION PROFILE excerpt taken from "TOBACCO AND HEALTH IN THE EUROPEAN UNION - AN OVERVIEW", (published by the European Bureau for Action on Smoking Prevention (BASP), 117 rue des Atrébates, 1040 Brussels, Belgium, tel +32 2 732 2468, fax +32 2 736 91 92, email BASP) 12 EU Member States are profiled in this report. Note: Some graphics have been omitted and in some cases the following version may differ slightly in format to the printed version. I. General information Population at 1.1.1993 : 346,798,900 Projection for year 2000 : 357,326,000 Population +15 years (1992) : 283,789,000 Area : 2,363,100 km2 Density per km2 : 146.8 Gross Domestic Product per habitant in Purchasing Power Standard (PPS)1 in 1992 : 15,616 1 A unit of measure which makes it possible to elmiminate the influence of differing price levels between countries and to make comparisons in real terms. II. Consumption of tobacco 1. Prevalence of smoking Within the framework of the "Europe against Cancer" programme, the Commission of the European Communities has, between Spring 1984 and Spring 1994, carried out 11 public opinion surveys on the subject of smoking (with a sample size of an average of 12, 500 persons). These surveys show a slight decrease in the percentage of smokers in the European Union since the start of the first action plan against cancer. Percentage of smokers in the European Union Period Males % Females% Total % Spring 1987 46 29 37 Spring 1988 44 28 36 Autumn 1988 43 28 36 Spring 1989 43 28 35 Autumn 1989 45 29 36 Spring 1990 41 26 33 Autumn 1990 44 28 36 Autumn 1991 42 28 35 Spring 1992 43 28 34 Autumn 1992 43 28 35 Spring 1994 42 28 34 Source : Commission of the European Communities Percentage of smokers by sex and country since 1987 Males Females % % 87-88 89-90 91-92 94 87-88 89-90 91-92 94 B 45 41 41 40 29 28 24 26 DK 46 48 48 43 44 45 42 48 D West 43 44 39 42 28 27 26 27 D East * 48 42 47 * 22 26 23 GR 62 54 55 46 25 26 25 28 E 52 51 48 46 27 28 27 26 F 45 45 49 47 29 28 32 30 IRL 38 40 35 37 32 31 31 25 IT 40 38 38 38 27 26 26 25 Lux 37 36 40 34 31 23 26 29 NL 49 45 46 48 39 34 33 37 P 46 43 40 38 12 11 12 15 UK 40 37 35 35 31 30 29 29 EU 44 43 42 42 28 28 28 28 Source : Commission of the European Communities 2. Smoking prevalence by type of smoker in 1994 Manufactured cigarettes are by far the most popular tobacco product in the European Union. In a number of countries, however, the consumption of roll-your-own cigarettes is also quite important. This is particularly the case in The Netherlands where 24% of smokers use RYO tobacco and Denmark (14%). Consumption of RYO tobacco is less important but, nevertheless significant, in Belgium (6 %), France (4%), Luxembourg (4 %), the UK (3%) and West Germany (3%). The percentage of pipe or cigar smokers is highest in Denmark (6%), followed by The Netherlands (4%) and Luxembourg (4%). Smokers of Smokers Smokers Ex Never Smokers packeted of RYO of cigars Smokers Smokers of cigs, cigarettes% cigarettes% or pipe% % % cigars or pipe% B 26 6 3 17 50 33 DK 32 14 6 21 34 45 D 29 3 2 17 48 34 East 32 1 1 18 48 34 West 28 3 2 18 48 34 GR 36 1 - 16 48 36 E 34 1 1 17 47 36 F 34 4 3 17 44 39 IRL 28 1 2 21 47 31 I 30 1 1 16 52 31 LUX 27 4 4 22 47 31 NL 28 24 4 24 33 42 P 26 - - 13 61 26 UK 28 3 3 27 40 32 Total31 4 2 19 46 34 Source : Eurobarometer 41 - Spring 1994 III. Price and taxation 1. Price and level of taxation of cigarettes In 1994, the largest price difference, between Member States, for one packet of cigarettes, of the most popular price category, was 1 to 6. Price and tax structure on cigarettes of the most popular price category in EU Member States (as at 1 January 1994) Country Total Total Current most popular tax tax yield price category incidence (ECU per 1000 cig.) (ECU per 1000 cig.) B 74.17 % 83.19 111.26 DK 84.56 % 153.42 181.43 D 71.72 % 92.03 128.32 GR 71.88 % 58.83 81.85 E 68.41 % 24.42 35.70 F 74.84 % 77.57 103.64 IRL 75.18 % 113.86 151.46 I 72.97 % 56.97 78.08 L 68.46 % 54.31 79.33 NL 71.90 % 73.76 102.59 P * 80.96 % 53.58 66.18 UK 76.43 % 123.52 161.63 Source : Commission of the European Communities * As at 1.4.1994 This high price differential does not, however, apply to international brands like Marlboro where the price difference is only 1 to 2.6. 2. Price and level of taxation of Roll-Your-Own (RYO) tobacco The price difference for RYO tobacco between Member States is also approximately 1 to 6 ECU. Price and tax structure on roll-your-own tobacco in EU Member States (as at 1 January 1994) Total Total tax Average price of 1 kg tax incidence yield ECU per 1 kg in ECUs B 53.87 % 23.83 44.24 DK 70 % 54.86 78.37 D 56.34 % 34.97 62.07 GR 72.25 % 49.22 68.12 E 44.61 % 11.60 26.00 F 67.7 % 20.65 30.5 IRL 75.44 % 108.17 143.39 I 69.97 % 37.82 54.05 L 42.21 % 16.13 38.21 NL 61.90 % 32.81 53.00 P 40.0 % 18.73 46.82 UK 82.03 % 130.51 159.10 Source : Commission of the European Communities / Voorlichtingsbureau sigaretten en shag. 3. Government tax revenue in 1992 Receipts from Excise Tax receipts as a % of & VAT on all total central Government tobacco products (MECU) tax revenues Belgique/ Luxembourg 1,237 2.3 Denmark 1,249 2.3 France 5,303 2.3 Germany 12,011 5 Greece 1,099 6.2 Ireland 651 6.2 Italy 5,246 1.8 Netherlands 1,593 2.2 Portugal 692 4 Spain 2,423 2.6 UK 10,000 3.5 Total 41,504 3.5 Source : The Confederation of European Community Cigarette Manufacturers V. The costs of smoking 1. Number of tobacco-related deaths In 1990, tobacco was responsible of 511,700 deaths in the European Union (423,000 men and 88,700 women). Tobacco-related deaths - 1990 Male Female Total All cancer 191,000 26,000 217,000 (Lung cancer) 122,000 19,000 141,000 Vascular 118,000 32,000 150,000 Respiratory 73,000 20,000 93,000 Other 41,000 10,700 51,700 Source : Peto, Lopez et al., 1992, 1994. The 242,000 persons who died in the age group between 35 and 69 are estimated to have lost 21 years of life because of tobacco use. Tobacco was responsible for 47% of all cancer deaths among men between 35 and 69 years and 8% of all cancer deaths among women in the same age group. 2. Evolution of the number of tobacco-related deaths Tobacco was responsible for 19,400 deaths in 1955 and it is estimated that it will be responsible for 489,000 deaths in 1995. Between 1950 and the year 2000, it is estimated that tobacco will have killed over 20 million people in the European Union. VI. Legislation 1. Advertising The advertising of tobacco products on television is banned in all European Community countries since October 1991 (Directive 89/552/EEC). The Commission has, furthermore, proposed the introduction of a total ban of tobacco products except in specialised tobacco sales outlets. The proposed directive, initially put forward in 1991, received the approval of the European Parliament in 1992, but has not yet been adopted by the Council of Health Ministers where no agreement has, so far, been reached. 2. Public places In July 1989, the EC adopted a Resolution inviting Member States to adopt measures banning smoking in public places and on all forms of public transport. The Resolution foresees that in the event of conflict, the right to health of non-smokers should prevail over the right of smokers to smoke. Unlike Directives, Resolutions are not binding on Member States but merely represent a guideline for action. 3. Labelling The labelling of tobacco products is regulated by two European Directives (Directive 89/622/EEC of 13 November 1989 and Directive 92/41/EEC of 15 May 1992). Since January 1992, tar and nicotine yields must be indicated on cigarette packets and all tobacco products must carry the general warning "Tobacco seriously damages health". Cigarette packets must, in addition, also carry a specific warning to be chosen from a set list. The warnings must be printed in the official language(s) of the country of final marketing and should cover at least 4% of each large surface of the unit pack, excluding the indication of the responsible authority. This percentage is increased to 6% for countries with two official languages and to 8% for countries with three official languages. Since January 1994, tobacco products other than cigarettes must also carry the supplementary specific warnings. Warning on tobacco products other that cigarettes must, in each language used, cover at least 1 % of the total surface of the unit pack and must be easily visible, clearly legible and indelible. 4. Tar content of cigarettes The tar content of cigarettes marketed in the European Community is regulated by an EC Directive adopted in May 1990 (Directive 90/239/EEC). This Directive states that the tar content of cigarettes should not exceed 15mg per cigarette as of 31 December 1992, or 12mg per cigarette as of 31 December 1997. 5. Oral tobacco Directive 92/41/EEC introduces a ban on the marketing of certain tobacco products for oral use recently introduced and specifically targeted at the younger market. The sale of these products is banned in all European Community countries since 1 July 1992. The definition of the type of product which is prohibited by this Directive is given as follows : "all products for oral use, except those intended to be smoked or chewed, made wholly or partly of tobacco, in powder or particulate form or in any combination of these forms - particularly those presented in sachet portions or porous sachets - or in a form resembling a food product". 6. Taxation of tobacco products Three Directives on the taxation of tobacco products were adopted in October 1992. These define the structure of taxation for tobacco products (Directive 92/78/EEC) and set certain minimum taxation levels(Directive 92/79/EEC and 92/80/EEC). They are effective as of 1 January 1993. Under the terms of these Directives, taxes on cigarettes should represent a minimum of 70% of the final retail price (a minimum of 57% in excise taxes and a minimum VAT rate of 13,04%). VII. Tobacco industry 1. Production of cigarettes In 1993, the major world producers of cigarettes were China (1,675 billion cigarettes), the EU (694 billion), the USA (661 billion), Japan (295 billion), Brazil (149 billion) and Russia (132 billion). EU share of world cigarette production (million pieces, calendar years) 1990 1991 1992 1993 1994 * World total 5,417,141 5,349,69 5,345,449 5,294,018 5,342,991 EU 698,924 719,684 718,874 694,057 693,435 % 12.9 13.4 13.4 13.1 12.9 Source : U.S. Department of Agriculture * Estimates 2. Exports In 1993, the major world exporters of cigarettes were the EU (218 billion cigarettes), the USA (195 billion), Hong Kong (78 billion) and Singapore (54 billion). EU share of world cigarette exports by country (million pieces, calendar years) 1990 1991 1992 1993 1994 * World Total 681,997 777,915 882,079 876,135 910,115 EU 196,904 238,126 247,807 218,716 231,174 28.9% 30.6% 28.0% 24.9% 25.4% Source : US Department of Agriculture * Estimates 3. Imports In 1993, the major world importers of cigarettes were the EU (142 billion cigarettes), Hong Kong (60 billion), Japan (59 billion) and Singapore (47 billion). EU share of world Cigarette imports (million pieces, calendar years) 1990 1991 1992 1993 1994 * World Total 461,428 525,530 563,371 573,554 585,911 EU 129,779 135,598 143,991 142,058 143,740 % 28.1% 25.8% 25.5% 24.8% 24.5% Source : US Department of Agriculture * Estimates 4. Employment Employment in the manufacturing of tobacco products in the EU dropped from 125,800 full-time equivalent jobs in 1978 to 94,050 in 1986 and 83,419 in 1990 (The tobacco industry in the European Comunity, 1990; Pieda). This represents a decrease of 34 %. During the same period, production of cigarettes increased by 7 %. This demonstrates that the decrease in employment in the tobacco manufacturing sector has been due to the tobacco industry's own modernisation policy rather than to reduced production. Employment in tobacco manufacturing in the twelve Member states of the EU (1978-1990) Year Number of persons employed 1978 125,800 1982 111,250 1986 94,050 1990 83,419 Source : Pieda VIII. Agriculture 1. The Common Agricultural Policy (CAP) in the tobacco sector The common market in raw tobacco dates from 1970. At that time, within the EC, the production of raw tobacco was mainly limited to France and Italy. About 90% of Community production received national financial aid, intended to facilitate the disposal of the harvest at prices that would ensure a fair income to producers. The primary aims of the EC policy were to : - establish a common policy in the sector; - ensure producers outlets for their products and a fair income; - promote the introduction of tobacco in certain Community regions (namely the most disadvantaged); - encourage improvement in quality and the adaptation of production eventually leading to a switch to tobacco varieties in greater demand. To implement this policy, the European Community devised a system which included price setting, subsidies and the buying of excess stocks into intervention. The policy failed as more unwanted varieties were grown and the cost of all these subsidies spiraled out of control (since 1989 more than 1 billion ECU a year). EC reforms in the tobacco sector In 1990, the Commission agreed that a reform was needed - not for health reasons but because of concern about the cost of the tobacco policy. It ordered an internal investigation. A group of experts was constituted, which completed their report in July 1990. The Council of Agriculture Ministers adopted, on 30 June 1992, two regulations, which made several important provisions as concerns the organisation of the Common market in order to increase transparency, to step up controls and to prevent fraud. The regulations included : - a reduction of the total guaranteed volume from 390,000 tonnes in 1992 to 370,000 in 1993 and 350,000 in 1994; - a community fund for tobacco research and information which will be financed to an amount of not more than 1% of subsidies allocated to tobacco. The fund will finance and coordinate programmes of research and information to promote greater knowledge of the harmful effects of tobacco and the appropriate preventive and curative measures relevant to such effects and to orientate Community tobacco production towards the least harmful varieties. 2. Production of raw tobacco In 1993, the major world producers of raw tobacco were China (3,123 millions kg), the USA (651 million kg), India (522 million kg), Brazil (509 million kg) and the EU (373 million kg). EU share of world production of raw tobacco (in million kg) 1990 1991 1992 1993 1994* World 7096 7613 8324 8352 7771 EU 420 430 408 373 361 % 5.9% 5.6% 4.8% 4.4% 4.6% Source : US Department of Agriculture *estimate 3. Area under leaf tobacco cultivation EU share of World area under leaf tobacco cultivation (thousand ha.) 1990 1991 1992µ 1993 1994* World 4640 4870 5278 5335 4743 EU 217 209 228 178 173 % 4,5 % 4,3 % 4,3 % 3,3 % 3,6 % Source : US department of Agriculture *estimate 4. Imports of leaf tobacco In 1993, the EU was by far the biggest importer of raw tobacco in the world (417 million kg). Other major importers were the USA (360 million kg), Russia (125 million kg) and Japan (119 million kg). EU share of World imports of raw tobacco (in million kg) 1990 1991 1992 1993 1994 * World 1617 1776 1806 1750 1622 EU 463 528 527 417 - % 28.6 % 29.7 % 29.1 % 23.8 % - Source : US Department of Agriculture *estimate 5. Exports of leaf tobacco In 1993, the major world exporters of raw tobacco were Brazil (243 million kg), the EU (210 million kg), the USA (208 million kg) and Zimbabwe (188 million kg). EU share of World exports of raw tobacco (in million kg) 1990 1991 1992 1993 1994 * World 1694 1830 1747 1776 1722 EU 223 210 200 210 - % 13.1 % 11.5 % 11.4 % 11.8 % - Source : US Department of Agriculture *estimate The price of a pack of Marlboro at 1 April 1994 (in ECUs) Portugal 1,5 Spain 1,7 Greece 1,7 Luxembourg 2,01 Italy 2,20 The Netherlands 2,25 France 2,35 Belgium 2,51 Germany * 2,59 Ireland 3,25 United Kingdom 3,29 Denmark 3,91 * Pack of 19 cigarettes.