Hermes Welcomes Further Progress on the Tobacco Excise Directive
Brussels, 29 May 2026 – Hermes European Study Centre today welcomed further progress on the Cyprus Presidency’s compromise text on the Tobacco Excise Directive (TED), building on its position paper published earlier this month.
The latest working party sessions have produced a fourth compromise text that, in Hermes’ assessment, strengthens the basis for agreement on a reform that has eluded the EU for more than a decade. The direction of travel is clear and encouraging. With a vote in the European Parliament’s FISC committee scheduled for 3 June and a meeting of EU Finance Ministers on 12 June, the coming weeks will be consequential for the file.
When Hermes published its position paper on 7 May, the Cyprus compromise had already distinguished itself from the European Commission’s original 2025 proposal, which many Member States had criticised for its overly centralised approach and the disproportionate pace of tax increases across product categories.
The fourth text goes further still, demonstrating greater precision, more transparent rate-adjustment mechanisms, and a more differentiated approach to transitional periods that acknowledges the realities of Member States at different stages of fiscal convergence.
“The fourth text confirms what we observed earlier this month: this Presidency is approaching a genuinely complex file with pragmatism and a clear commitment to finding common ground among Member States,” said Giovanni Kessler, Chairman of the Hermes Scientific Committee and former Director-General of the European Anti-Fraud Office (OLAF).
“With each revision, the text has moved closer to what Member States can realistically accept. A deal is within reach,” added Tiziana Demma, President of Hermes European Study Centre.
A successfully concluded TED revision would constitute a meaningful contribution to both the EU’s public health objectives and the integrity of the single market in tobacco and related products.
As negotiations continue, Hermes European Study Centre will remain engaged as an independent voice for fiscally sound, pragmatic European policy that works for all Member States
