European businesses challenge approach to revised tobacco legislation

A coalition of 201 European businesses and trade associations has urged European Commission President Ursula von der Leyen to reconsider plans to revise EU tobacco and nicotine legislation, warning that poorly designed measures could damage employment, investment and tax revenues. The appeal, first reported by EU Reporter earlier this week, calls for a fuller assessment of the economic, social and employment implications of changes to the Tobacco Products Directive and Tobacco Advertising Directive. The signatories represent retailers, tobacconists, wholesalers, farmers, agricultural processors, hospitality businesses, packaging companies and manufacturers. They argue that public health protection and European competitiveness should be pursued together, through greater consultation and stronger enforcement of existing rules. “We are not asking the Commission to abandon its public health ambitions. We are asking it to listen, follow its own rules and get this right,” said Nathalie Darge, secretary general of Tobacco Europe. The organisation represents manufacturers including British American Tobacco, JT International and Imperial Brands. The intervention comes as Brussels considers adapting tobacco controls to a changing market, particularly the growth of newer nicotine products. The European Commission’s April evaluation found that existing legislation had helped reduce smoking and tobacco-related deaths, while identifying emerging challenges, especially among young people. The EU’s Beating Cancer Plan aims to bring tobacco use below 5 per cent of the population by 2040. The coalition said that the economic impact of further regulation requires closer scrutiny. Citing a 2023 S&P Global Market Intelligence study, it claims the tobacco and nicotine value chain supports more than 1.5 million jobs, generates over €107 billion annually in excise duties and VAT, and contributes around €195 billion to EU GDP. These figures represent the sector’s overall economic footprint, rather than the net impact of any specific regulatory proposal. Small businesses and farming communities are central to the coalition’s concerns. “Many of our members are small, family-owned companies that cannot absorb continuous costs and uncertainty,” said Peter van der Mark, secretary general of the European Smoking Tobacco Association. Przemysław Noworyta, secretary general of the European Union of Tobacco Growers, warned that decisions taken in Brussels could have lasting consequences for farming families and disadvantaged rural regions. The coalition also challenged the preparation of the review, citing a reported negative opinion from the Regulatory Scrutiny Board on the Commission’s 2026 impact assessment, following an earlier negative opinion on its evaluation of existing rules. It called for a process based on stronger evidence and consultation. Illicit tobacco trade is another key concern, with signatories urging the Commission to prioritise enforcement and warning that further restrictions could push consumers towards illegal suppliers. A September report by the European Court of Auditors estimated annual revenue losses from illicit tobacco at €13 billion. However, the auditors also found that reliable estimates of the illicit market’s size and economic impact were lacking, calling for better information, cooperation and enforcement. The public health argument remains substantial, with the Commission identifying tobacco consumption as the EU’s largest avoidable health risk and attributing nearly 700,000 deaths annually to it. The coalition said it was ready to work with the Commission on a proportionate, evidence-based framework, arguing that the review should account for business activity and rural livelihoods alongside its health objectives. The dispute comes as EU finance ministers prepare to discuss a separate overhaul of the Tobacco Excise Directive (TED) at an ECOFIN meeting on November 9, 2026. Ireland, which holds the Council’s rotating presidency, is seeking political agreement on the long-delayed revision, proposed by the Commission in July 2025. Sweden has blocked previous compromises since June, leaving the Irish presidency with one meeting before the file passes to Lithuania. The coalition’s intervention adds to pressure on Brussels to explain how revised tobacco rules can deliver effective public health protection while remaining economically workable and enforceable.