The Commission believes that such prices do not respect Community law, distort competition and benefit manufacturers only by safeguarding their profit margins.
In order to reduce tobacco consumption - a positive base step in boosting public health - the EC advocates increasing the excise duty on cigarettes.
"Reasoned opinion" is of the early stages in possible legal action by the EC against Member States. The reasoned opinion sets out in full the grounds for the legal action and requiring the matter to be sorted out by a specific date, in this case within two months.
If France and Belgium do not increase excise duty on cheap cigarettes within this deadline, the Commission can then bring an action in the European Court of Justice.
The Commission recognises that price and tax measures impact on tobacco consumption. By encouraging Member States to increase excise duty and minimum taxes, price competition would not be hampered for the sole benefit of manufacturers, yet cigarette conusmption may be tackled.
Related Sections and Links:
EPHA Section on Tobacco and Smoking
Current legislation on tobacco products - (European Commision Site)
**UPDATED** Implementation of the tobacco advertising ban in Europe
Lifting the smokescreen: 10 reasons for a smoke free Europe
Tobacco or Health in the European Union - Past, Present and Future
