The European Union (EU) is a political and economic union of mostly European nations. Its origins date back to a post–World War II political desire to create a lasting peace by integrating the interests of member states.
The initial step was seemingly modest: the creation of the European Coal and Steel Community in 1951, agreed upon by Belgium, France, Germany, Italy, Luxembourg, and the Netherlands. In 1957 these six states signed the Treaty of Rome, broadening economic cooperation by creating a “Common Market” known as the European Economic Community (EEC), later shortened to European Community as interstate initiatives expanded.
In 1973 Denmark, Ireland, and the UK joined the EEC. Membership continued to expand, with Greece joining in 1981, followed by Spain and Portugal in 1986.
In February 1992 the Treaty of Maastricht was signed, creating the EU. The treaty allowed for the creation of a single currency—the euro—as well as closer ties on foreign and security policy and freer movement of people, goods, and services. On January 1, 1993, the EU came into existence.
Post 1993 the EU has continued to integrate nations, welcoming Austria, Finland, and Sweden in 1995. Ten nations, the largest EU enlargement to date, joined in 2004: Estonia, Latvia, Lithuania, Poland, the Czech Republic, Slovakia, Hungary, Slovenia, Malta, and Cyprus. The current membership of 27 nations was reached in 2007 with the addition of Bulgaria and Romania.
The combined beer production of EU member states makes it one of the world’s three largest markets, alongside China and the United States, with 363.7 million hl (approximately 310 million US bbl) brewed in 2009. The largest producers were Germany at 98.1 mhl (83.5 m US bbl); the UK, 45.1 mhl (38.3 m US bbl); Poland, 36.0 mhl (30 m US bbl); and Spain, 33.8 mhl (29 m US bbl).
Globally, the EU’s best known beer producers may well be Belgium, the Netherlands, and Germany. Belgian production totaled 18.0 mhl (15 m US bbl) in 2008, of which 10.2 mhl (8.5 m US bbl) was exported, a total that includes fellow EU member states as recipients. In the same year Dutch brewers shipped 15.4 mhl (12.8 m US bbl) beyond their borders, much of this as Heineken products destined for the United States; German brewers exported 13.9 mhl (11.9 m US bbl).
Breweries are both plentiful and diverse in EU member nations, as are the styles of beer brewed. All 27 nations can boast brewers, ranging from more than 1,300 in Germany to just 1 in Malta. In 2008 there were more than 3,400 breweries working across the EU—this number is increasing as microbreweries come to life, especially in Denmark and the UK but also in Italy and the Netherlands.
EU taxation policy, as expressed in Directive 92/83/EEC, is intended to harmonize members’ excise duties on alcohol and alcoholic beverages, but offers latitude on duty, especially with regard to smaller producers. EU member states may reduce duty as much as 50% below that of their standard national rate, applicable up to a maximum of 200,000 hl (170,434 US bbl) of production.
The effect of such reduced duty rates can be considerable. The UK, which introduced the 50% maximum in 2002 for production to 5,000 hl (4,261 US bbl), has since then had a doubling of the country’s brewers, approaching 800 at the close of 2010.
EU taxation policy also mandates a minimum level of excise duty for beer, as shaped by Directive 92/83/EEC. The intention of this legislation was to harmonize excise regimes on alcohol and alcoholic products between EU member states.
The Directive has achieved limited success in meeting this objective. The minimum level of duty, which was not index linked for inflation, is now solow at 1.87 euros/hl/per degree alcohol that only one member state, Bulgaria, has excise duty for beer set at this minimum. Finland is currently the state with the highest beer excise duty, at 25.96 euros/hl/degree alcohol.
The result is that neighboring EU states apply widely differing rates of excise duty, encouraging increases in cross-border legal—and illicit—beer imports. This was an issue in the 1990s between France and the UK. French excise duties today remain one-tenth of the UK’s, leading to extensive consumer importation well in excess of that intended for personal consumption, rather than for illegal resale. There continues to be extensive importation of cheaper Estonian beer into neighboring Finland.
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In 1993 the EU introduced protected food and drink name schemes similar to the Appelations d’Origine Contrôllée system used for wine. Protected Designated of Origin is awarded to products produced, processed, and prepared in a region using recognized methods. Protected Geographic Indication (PGI) recognizes a link between a product and the region in which it is produced in at least one stage of production, processing, or preparation. Finally, Traditional Specialty Guaranteed highlights traditional character in either the product itself or its method of production.
Use of these designations is not widespread, although the Czech Republic is currently the only EU member with PGI status for all beer produced in their country. Such designations can also be surrendered, as was the case for Newcastle Brown Ale when brewing of the beer brand ceased in Newcastle and was moved to Yorkshire.
EU legislation also concerns the brewing industry with regard to health policy, for example, reducing alcohol abuse. Legislation for labeling on allergens almost resulted in isinglass, dried swim bladders from fish used to clarify beer and wine, needing to be declared in the mid-2000s. Acting on evidence supplied by the brewing industry and its suppliers, the European Food Safety Authority eventually ruled such allergen labeling unnecessary.
The brewing industry’s political agenda is represented by the Brewers of Europe, which is headquartered in Brussels, with its members the national brewers associations of all EU states plus Norway, Switzerland, and Turkey. Beer drinkers’ interests are brought to the fore by the European Beer Consumers Union, which believes that beer, one of Europe’s natural drinks, deserves the support of the EU.