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Español When Big Tobacco "Goes on Strike", the State Capitulates
Here in our country, there have never been genocides, no one has ever thought of building an atomic bomb, and yet the country of “live and let live”, has been …occupied!
A cartel of foreign companies, some already convicted in Italy for having set up a “cartel”, has taken over the entire tobacco market - brands, factories and distribution. It can decide the rules of a sector worth 14 billion euro in tax revenues and it can cut off the supply flow at any moment.
Today our leaders are living in a relationship of harmonious friendship with those who are taking the Italians’ money away from them; here is an authentic example of what could happen to us tomorrow.
In 2006, the Spanish government decided to increase tobacco taxes, going against the interests of Philip Morris.
If the State increases taxes and earns more, the number of smokers drops because of the higher cost. Consequently, the State earns more but Philip Morris earns less. Big Tobacco notifies the State of its aberrant position: “Why should you earn more and I less?”
The coffers of the tobacco multinationals are as rich as those of the State, and they have no debts. So, in answer to the government’s legitimate decision to increase the taxes and the prices of cigarette, which in Spain are among the lowest of Europe, Philip Morris started up an Indian wrestling match with the State. With a demonstrative action, it drastically reduced the prices of its principal brands - with total disregard for the public health.
In this way, the State suffered significant damage to its intake of fiscal revenues. The cigarette maker’s move was effectively like a “strike”, where the worker, Philip Morris, gave up his earnings and worked at a loss to bend the Spanish State to his wishes by causing concrete financial harm.
Moreover, the Spanish maker Altadis, which, with a brand of highly successful economical cigarettes had a good share of the market, found itself with Marlboros being sold at 2.35 euro, less than an “economy cigarette”. So, Altadis was obliged to reduce by 65 cents the price of its most popular brands, “Fortunas” and “Ducados”, that went down to 1.85 euro. So doing, it made its contribution to the cause of Philip Morris.
In the end, like in union conflicts, the parties reached a compromise agreement. But the lesson is that Big Tobacco is powerful enough to face up to the State whenever it wants if the State starts adopting measures without its approval.
Yesmoke to the Aid of a Faint-Hearted State
In the past the United States Trade Representative (USTR) warned foreign companies that they were prepared to impose sanctions on products that the countries exported to the USA if free access was not given to American cigarette manufacturers on their markets. If we compare the efforts of our politicians with those of their American colleagues, we have to smile.
Knowing the tobacco multinationals, it is obvious that also in Italy they are prepared to interfere with the decisions of the governments any time the need arises.
Finding a political class astutely selected by the strong world powers, made up of servile and submissive personages, so far, the tobacco multinationals have never found themselves in any real confrontational situations in Italy, and they have never needed to come out on the field in open conflict, as in Spain.
Today the power of Philip Morris, allied with three other multinationals BAT, Japan Tobacco and Imperial that hold 99% of the market, is total, as they own and run everything including the distribution.
This cartel of cigarette manufacturers can close off their supplies from one day to the next leaving the Italians without cigarettes and the State without significant fiscal revenues. If this has not happened yet, it is only due to the relationship existing between the master and his servants.
Italy coincidentally, has not raised taxes but it has introduced the Minimum Price which, as the European Union says, “Safeguards the profits of the manufactures, sacrificing the revenue of the state.".
It is an ironic picture: Yesmoke is substituting the Italian State, and together with the European Union, has launched a battle against the Italian State, so that the Italian State itself, by removing the obstacle of the Minimum Price, can benefit from additional fiscal revenues, and no longer leave all the income to foreign producers.
And the paradox is that it is the lawyers of this servile and shameful country of ours are waging war against the Italian intruder Yesmoke…”to defend the health of the Italian people, starting from the children”.
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