English
Italiano EU: "Violation procedures" – Italian style
Television yes, cigarettes no.
Paolo Gentiloni
“The Government is preparing changes to the law that go precisely in that direction”, promptly underlined Minister Gentiloni, after the European Union started up violation procedures* against Italy for the “Gasparri” Law on telecommunications.
It would seem like advice and admonitions coming from Brussels are taken very seriously in this country. And thanks to the media hammering on the case, Italians know perfectly well today what a “Procedura di Infrazione” (Violation Procedure) is.
Yet, on April 10th of this year, another Violation Procedure was started against Italy for the so-called Minimum Cigarette Price**. But this one was received in absolute, total silence; it was not even mentioned by the government, the opposition or by any organs of information.
…Has perhaps Cosa Nostra put a “pizzo” (protection charge) on every pack of cigarettes sold in Italy? This increase to the minimum price does not help local manufacturers, nor does it bring greater income to the State; it only boosts the turnover of the cartel of the multinational giants. If there had been, instead, a generalised tax increase on all cigarette brands, the State would have benefited from higher revenues and the big cigarette multinationals, Philip Morris first of all, would have had to reduce their profits to remain competitive.
Coming back to the violation procedure regarding telecommunications, in an interview on July 15th, Minister Gentiloni showed that he was well-informed and anxious to comply with the European Union request: “The procedure should start on July 19th and be notified to Italy on July 21st. Subsequently we will respond to the European Union explaining how the government is preparing the modifications to the law”.
The European Union was pointing its finger at the advantages granted to the twin Rai-Mediaset TV services (the State TV and the Silvio Berlusconi group), also in the new land-digital market. “Our new government has always intended to make these changes, now we must do it”, declared Gentiloni. Well done! Hurray for Europe! Hurray for Italy! Hurray for Gentiloni!
14 billion Euro
If the European Union's directions regarding the media are taken very seriously in Italy, why, when referring to cigarette prices do they seem to have no importance? And yet, in this country smokers buy over 5 billion packs a year, bringing in some €14 billion euro of fiscal revenues for the State… a good business!
The European Union is right on the Minimum Cigarette Price (which continues to rise relentlessly, 10 eurocents at a time: from 2.70 to 3.30 euro a pack in the last six months); the situation is evident and undeniable, and maybe this is why there are some people, not very far-sighted, who prefer to avoid any form of publicity on this topic.
The April 10th Violation Procedure stated: “the Minimum Price obstructs free competition and protects the interests and the profit margins of the manufacturers” – and we point out, to the detriment of the Statès revenues.
But, since April 10th, not a single Italian politician has made a move, and not one journalist has dared to open his mouth. And, in the tobacco shop when he has to pay, the “Consumer sponsor” discovers that Minimum Price, again today, is another 10 cents more. That's it!
Let's check the accounts
Increasing prices simply by raising taxes, which would lead to a price increase on all cigarette brands, would bring in more income to the State and it would compel manufacturers to reduce the profits on their “Premium brands” to remain competitive.
If today's prices of cheaper cigarette brands were determined by higher taxes, the cigarettes would cost the same as they do today, but the State would make about 1.5 billion euro more each year — and Philip Morris would find itself in an extremely critical situation.
Is it possible that President Bush in person might have acted to save this jewel of the American economy, making everyone agree? The Minimum Price policy was established during the Berlusconi government, and the Violation Procedure was “abolished” as news during the centre-left government headed by Romano Prodi. Is something going on behind our backs, or were these decisions dictated by pure madness?
Who could have closed an eye on 1.5 billion euro more earnings for the State just to avoid problems with a “respectable” company like Philip Morris? Has Big Tobacco perhaps paid somebody, or had it already done someone favours in the past?
What can Philip Morris have given to its occult Italian backers in exchange for a favour of this magnitude? Maybe nothing, maybe just little sops. Our professional politicians and directors, after their Italian degree go to get their “Master's in the United States” (something that is considered extremely elegant in Italy); but they have never learned to keep the accounts and not be taken for a ride.
When Italian-style Europeanism is forced to move aside, we can only hope that someone, in this country of “coglioni” (morons), feels the need to make an accurate investigation and find a rational explanation for what has been happening.
* The EU Violation Procedure (Procedura di Infrazione) is activated when it is believed that a Member State has violated an obligation imposed by Community law. It can be invoked by the European Commission (article 226 the EC Treaty) or by any Member State against another Member State (article 227 of the EC Treaty).
** The Minimum Price for cigarettes obliges the manufacturers of lower cost cigarettes to raise their prices to a minimum set by the State. In theory, they would earn more; but in fact this does not happen, because consumers, choosing from a selection of products having the same price, are led to choose the better-known and more advertised brands.
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