EU finance ministers fail to reach agreement on tobacco tax overhaul

On November 9, 2026, the Council of Economic and Financial Affairs (ECOFIN) met in Brussels to discuss a critical proposal to overhaul the European Union's tobacco taxation directive. The Irish Presidency sought to secure a political agreement on a European Commission plan, first introduced in July 2025, which aims to modernize tax frameworks and include new products like e-liquids, heated tobacco, and nicotine pouches. The proposed changes included a significant increase in the minimum excise duty on cigarettes, rising from 90 euros to 215 euros per 1,000 units, a move that some analysts warned could increase retail prices to 13 euros per pack and fuel black market activity.

During the deliberations, representatives from several member states, including Greece, expressed concerns regarding the sudden financial burden on consumers and the potential for a spike in illicit trade. They requested longer adjustment periods to mitigate these impacts. Despite the efforts of the Irish Presidency and the support of countries like Cyprus, represented by Finance Minister Makis Keravnos, who characterized the proposal as balanced, the council failed to reach a unanimous agreement. The discussions concluded without a decision, leaving the future of the tax reforms uncertain as member states remain divided on how to balance public health objectives with economic realities.