Commission proposes to continue financing Community Tobacco Fund to pay for awareness-raising on dangers of tobacco

Background

The "Community Tobacco Fund" is derived directly from the aid granted for the production of raw tobacco within the framework of the Common Agricultural Policy.

The CAP reform regulations of 2003 and 2004 provide the mechanisms allowing the existing tobacco subsidies to be converted to a single farm payment as income support to farmers.

Under the tobacco reform of 2004, the tobacco-producing Member States will phase out production linked payments for tobacco growers between 2006 and 2010, replacing them with non-production-linked ’decoupled’ payments. These will be linked to the fulfilment of certain environmental, animal welfare and food quality standards (’Cross Compliance’). Some countries have already completely decoupled their payments and, as such, the budget for tobacco subsidies has declined from €922 million in 2005 to €321 million in 2007.

The Fund’s budget

In 2004, the budget heading relating to the Community Tobacco Fund has been allotted an appropriation of 14.4 million euro to cover communication actions taken by Directorate-General for Health and Consumer Protection (DG SANCO).

In the political discussions on the need to continue giving support to the production of raw tobacco, which costs around 950 million euro per year, the Council decided initially to introduce a levy not exceeding 1% on this subsidy to finance a Community fund for research and information. The percentage of the levy required for the Fund has been increased in stages, and will be raised up to 5%, and its scope was extended.

The current maximum ceiling for tobacco aid stands at €337.937 million, meaning that the maximum annual amount which can be transferred to the Fund is €16.897 million.

The projects financed by the Fund

 The development of new tobacco varieties and cultivation methods, alternative uses for raw tobacco and alternative crops (until 2001) and projects to help tobacco growers to switch to other crops or activities (since 2002). These projects are run under the responsibility of the Agriculture General Directorate (DG AGRI).

 Improving public awareness of the harmful effects of tobacco consumption through education and information. The Fund gave support to the "HELP – for a life without tobacco" campaign. These projects are run under the responsibility of the DG SANCO.

The Fund’s public health objectives

 Raising public awareness of the harmful effects of tobacco consumption, including passive smoking.

 Improving the relevance and effectiveness of the messages put across about the harmful effects of tobacco consumption, and the methods of communication used (language and images).

 Preventing and stopping smoking.

 Disseminating the results to the national authorities and the relevant sectors.

Issues

On 4 February 2008, the European Commission today proposed to extend the financing of the Community Tobacco Fund for the next two years.

The Fund could be worth up to €16.897 million per year.

Comments

Smoke Free Partnership

“There is a need for more resources across a range of measures that have proven to be cost effective as explained in the ASPECT Report. Mass media campaigns can influence and encourage behaviour change but the lack of capacity to drive forward effective tobacco control measure in Europe, particularly in the EU-12 and the Mediterranean countries, should also be given priority”.

For further information

 DG Agriculture webpage on tobacco

 [DG Public Health webpage on tobacco as a determinant->http://ec.europa.eu/health/ph_deter...