- EU finance ministers failed to agree on the tobacco excise reform at the November 9 Ecofin, even though 26 of the 27 Member States backed it;
- Malta is the only country still opposed, and tax matters require unanimity;
- Sweden, until now the main opponent, backed the Irish compromise, which would have allowed it a transitional minimum rate on nicotine pouches equal to its current national rate;
- According to Agence Europe, Member States agreed to write the principle of a minimum tax on nicotine pouches into EU law, with the level to be set later;
- The Irish Presidency hopes to close the deal at the December 11 Ecofin; otherwise, the file passes to Lithuania in January 2027.
26 out of 27
It was not enough. At the Economic and Financial Affairs Council (Ecofin) on Monday, November 9, EU finance ministers could not agree on the revision of the tobacco excise directive, which would raise minimum rates and extend them to e-cigarette liquids, heated tobacco and nicotine pouches. Irish Finance Minister Simon Harris, who chaired the meeting, said that 26 of the 27 Member States were ready to approve the text. But tax matters require unanimity, and a single objection is enough to block the reform.
In October, the Irish Presidency had circulated two new compromise texts to Member States. According to a note from the Council’s General Secretariat dated November 5, only one issue remained open before the meeting, described as politically and culturally sensitive: the minimum rate for nicotine pouches. For e-liquids, whether or not they contain nicotine, the compromise text submitted to ministers sets an EU minimum of €0.36/ml, with lower transitional rates of €0.20/ml and then €0.25/ml.
Nicotine pouches: the principle, not the rate
In that note, the Presidency proposed a minimum of 10% of the retail selling price or €30 per kilogram from 2028, rising to 25% or €40 per kilogram in 2030 and 2031, then to 50% or €50 per kilogram from January 1, 2032. This was already far below the Commission’s original proposal.
The picture changed during the meeting itself. According to Agence Europe, Swedish State Secretary Johanna Lybeck Lilja endorsed an Irish proposal that would have allowed Sweden to apply a transitional minimum rate equal to its current rate, €20 per kilogram, from July 2028 until the end of 2029. This support came even though Sweden is still run by a caretaker government: on November 3, the Riksdag rejected Centre Party leader Elisabeth Thand Ringqvist as prime minister, the second failed vote since the election. Stockholm had opposed from the outset any EU minimum that would limit its ability to tax nicotine products according to their relative risk.
Finland, on the other hand, argued that the compromise had watered the text down too much. Before the meeting, the Finnish Ministry of Finance said the proposed minimum for nicotine pouches was so low that Finland could not approve it. During the debate, Minister Riikka Purra criticised the Irish Presidency for dropping all tax and public health ambition on nicotine pouches, citing the sharp rise in their use among young Finns.
The outcome was a middle ground. According to Agence Europe, Member States agreed to write the principle of a minimum excise duty on nicotine pouches into EU law, with the Commission to propose, if necessary, legislation setting that minimum in early 2029. Harris warned his counterparts that until the reform is adopted, the EU rate applied to nicotine pouches remains zero, with no agreed limits on cross-border purchases.
Malta, the last holdout
During the round table, three countries opposed the compromise, according to Agence Europe: Finland, Estonia and Malta. Estonian Minister Jürgen Ligi criticised the mechanism indexing minimum rates to inflation, before his country accepted the compromise after the meeting: minimum rates will not be adjusted for inflation until the next revision of the directive. Finland also eventually joined the majority.
Maltese Finance Minister Clyde Caruana also criticised the indexation mechanism and maintained his opposition. According to the Times of Malta, Valletta insists that taxation should remain a national prerogative, and Prime Minister Robert Abela reportedly intervened personally with his Irish counterpart Micheál Martin. This position is not new: as early as October 2025, Malta was among the countries that considered the proposed minimum rates too high.
New date: December 11
Harris said the Presidency would not reopen the negotiations and would keep working with the remaining Member State. Eunews reports that European sources are optimistic about reaching an understanding with Malta in the coming days through bilateral arrangements. The next opportunity is the December 11 Ecofin, the last under the Irish Presidency.
Even with an agreement, the text would not take effect right away. The Council note also provides for requesting the opinion of the European Parliament, which rejected the directive in June, and the first minimum rates would not apply before 2028.
Lithuania waiting in the wings
If no agreement is reached by the end of the year, the file will pass to Lithuania, which holds the Council Presidency from January 1 to June 30, 2027. It is one of Europe’s toughest countries on vaping: it has banned all flavours except tobacco since 2022, and its excise duty on e-liquids will reach €3.91/ml on January 1, 2027, more than ten times the €0.36/ml EU minimum in the compromise text. Tobacco taxation is not among its announced priorities, however, as we explained in our previous article.
