EU tobacco tax reform blocked by member states

A proposed reform to increase minimum EU excise duties on cigarettes and tobacco failed to secure approval at an Ecofin meeting in Brussels on November 9, 2026. The compromise, championed by the Irish presidency and supported by Cyprus, sought to raise the minimum excise duty on cigarettes from 90 to 200 euros and increase taxes on heated tobacco products to 80 euros per thousand units by 2032. The deal included a transitional period until January 1, 2036, for ten countries, including Cyprus, Greece, Italy, and Spain, allowing for a more gradual implementation of tax hikes.

Despite support from most member states and a late pivot from Italy to endorse the text, the agreement failed due to a lack of unanimity. Malta issued a formal veto, citing concerns over reduced national flexibility and the scale of the proposed increases. Additionally, Sweden and eight other nations maintained objections, with Stockholm specifically citing an inability to shift its position due to the lack of a government and ongoing concerns regarding regulations on nicotine pouches. Finance Minister Makis Keravnos defended the deal as a balanced compromise, noting it incorporated strategies developed during Cyprus' earlier council presidency. With unanimity required for tax changes, the legislation remains in deadlock, and no immediate path forward has been announced following the breakdown in negotiations.