Brussels, 30\/07\/2026 \u2013 Giovanni Kessler, President of the Scientific Committee of the Hermes European Study Centre today commended the European Anti-Fraud Office (OLAF) and participating national authorities for recently dismantling two international organisations involved in the manufacture and trafficking of counterfeit tobacco in Spain.<\/p>\n
The operation resulted in 50 arrests and the seizure of more than 20 million cigarettes, nearly 40 tonnes of tobacco, manufacturing equipment, cash, firearms and 18 vehicles. It follows Operation NOXIA II, which resulted in the seizure of 149.5 million cigarettes and more than 105 tonnes of tobacco in late 2025. Counterfeit and smuggled tobacco poses a distinct public health threat: illicit products fall outside quality controls and health standards and pose a danger to consumers.<\/p>\n
\u201cHaving served as OLAF\u2019s Director-General from 2011 to 2017, I know the importance of timely intelligence, close co-operation between national authorities and effective cross-border co-ordination,\u201d said Giovanni Kessler, Chairman of the Scientific Committee of Hermes. \u201cCases of this magnitude require months, even years of investigative work and the ability to follow criminal activity across several jurisdictions.\u201d<\/p>\n
The two operations also highlight the persistence of Europe\u2019s illicit tobacco market. In 2016, Kessler\u2019s final full year leading OLAF, nearly 50 billion illicit cigarettes were consumed across the EU. By 2025, although overall volumes had declined, illicit cigarettes accounted for a larger share of the market and drove significantly higher estimated tax losses than a decade earlier. France\u2019s illicit share rose sharply over the same period, while Italy\u2019s fell substantially. \u201cTax policy by itself does not explain these differences. Geography, enforcement capacity, supply routes and consumer behaviour all matter,\u201d Kessler stated. \u201cBut price cannot be dismissed.\u201d<\/p>\n
Hermes supports gradual tax increases and illicit-market assessments before major tax rises or bans, alongside stronger enforcement against criminal supply networks to protect public health and consumer markets.<\/p>\n
\u201cThe policy choice is not between public health and enforcement. Both are necessary,\u201d Kessler added.<\/p>\n