08/09/2025
The European Union’s upcoming 2028-2034 budget cycle offers a unique opportunity to align policies with the values of fairness, health and sustainability that European citizens demand. In a recent opinion piece published in The European Correspondent, Maik Dünnbier, Director of Strategy and Advocacy at Movendi International, argues that in the EU budget there is a blind spot that undermines its objectives of innovation, cohesion and prosperity: alcohol taxation.
The hidden cost of alcohol-related harm
Alcohol remains one of the leading risk factors for premature death, disease and inequality in Europe. Nearly 800,000 people die each year from alcohol-related causes in the WHO European Region, including one in four young Europeans. Beyond the health costs, alcohol costs EU economies around €520 billion each year, or about 2.6% of GDP, mainly due to health expenditure and law enforcement costs.
Despite this considerable impact, the EU still grants more than €1.1 billion in annual subsidies to the wine industry and maintains a minimum tax rate of zero on wine, effectively protecting Europe’s most widely consumed alcoholic beverage from taxation in many countries. As Dünnbier points out, this situation is not accidental, but is a direct result of aggressive lobbying by the industry, which has systematically blocked evidence-based alcohol policy reforms.
Why tax reform is essential
Alcohol taxation is one of the five most effective and cost effective tools available to policymakers to reduce alcohol related harm according to the World Health Organization. Data shows that even modest tax increases reduce consumption, prevent harm and generate significant public revenue. Examples from Lithuania, the Czech Republic and other EU countries also demonstrate that tax reforms are feasible, effective and supported by public opinion.
Furthermore, studies suggest that doubling alcohol taxes in the EU could prevent thousands of cancer deaths each year, while increasing public revenues that could be reinvested in social and health programmes.
Aligning the EU budget with European values
The arguments in favour of alcohol taxation are not just about health economics, but also about fairness and justice. The harms of alcohol disproportionately affect the poorest communities, women and children, exacerbating inequalities and eroding social trust. Data show that Europeans care about fairness and want policies that protect health and reinvest in society rather than subsidising industries that profit from the harms of alcohol.
As the EU drafts its next long-term budget, it is time for EU policymakers to align the budget with the values of the people they represent and serve. Redirecting subsidies and reforming alcohol taxes could promote healthier societies, stronger economies, and a fairer Europe.