AOSTA, Italy — The 380,000 wheels of Fontina PDO cheese matured each year are
tiny in number compared to the millions churned out by more famous rivals — but
that doesn’t make the creamy cheese any less important to producers in Valle
d’Aosta, a region nestled in the Italian Alps.
Fontina’s protected designation of origin (PDO) provides consumers at home and
abroad a “guarantee of quality and of a short supply chain,” explained Stéphanie
Cuaz, of the consortium responsible for protecting the cheese from cheap
copycats, as she navigated a hairpin turn on the way to a mountain pasture.
With fewer than a hundred cows, a handful of farm hands and a small house where
milk is transformed into cheese, the pasture at the end of the winding road
feels far away from global trade tussles its flagship product is embroiled in.
The EU’s scheme to protect the names of local delicacies from replicas produced
elsewhere has proved controversial in international trade negotiations.
For instance, in 2023, free trade talks with Australia were swamped by
complaints from its cheese producers railing against EU demands that they
refrain from using household names like “Mozzarella di Bufala Campana” and
“Feta.”
Fontina was caught in the crossfire, having been included in the list of names
the EU wants protected Down Under.
Fontina DOP Alpeggio is a variant of the cheese produced during the summer
months using milk from cows grazing in alpine pastures up to 2,700 meters above
sea level | Lucia Mackenzie/POLITICO.
No such protections exist in the U.S., where in the state of Wisconsin alone,
there are a dozen “fontina” producers, one of which won bronze at the World
Cheese Awards in 2022.
Europe’s small-time food producers find themselves in a bind: their protected
status is vital for promoting their traditional products abroad, but charges of
protectionism have soured some trade negotiations. Nonetheless, many of the
bloc’s trading partners clearly see the benefits of the system, baking in
similar protections for their own products into trade deals.
PROTECTION VS PROTECTIONISM
Fontina cheese can only be labeled as such if several strict criteria are met.
Cows of certain breeds need to be fed with hay of a certain caliber and,
crucially, every step of the cheesemaking process must take place within the
region’s borders.
For Cuaz, who grew up on a dairy farm in Doues, a small town of around 500
people perched on the valley side, the protection of the Fontina name is vital
to keep farming alive and sufficiently paid in the region. Tucked up against the
French and Swiss borders, Valle d’Aosta is Italy’s least populated region, home
to just over 120,000 inhabitants speaking a mixture of Italian, French and the
local Valdôtain dialect.
Fontina — which with its distinctive nutty flavor can be enjoyed on a
charcuterie board, in a fondue, or encased in a veal chop — is one of over 3,600
foods, wines, and spirits registered under the EU’s geographical indications
(GI) system. This protects the names of products that are uniquely linked to a
specific region. The idea is to make them easier to promote and keep small
producers competitive.
In the EU alone, GI products bring in €75 billion in annual revenue and command
a price that’s 2.23 times higher than those without the status, the bloc’s
Agriculture Commissioner Christophe Hansen proclaimed earlier this year. He
called the scheme a “true EU success story.”
The GI system is predominantly used in gastronomic powerhouses like Italy and
France, and Hansen hopes to promote uptake in the eastern half of the bloc.
Italy has the most geographical indications in the world, accounting for €20
billion in turnover, the country’s Agriculture Minister Francesco Lollobrigida
pointed out, describing the system as an “extraordinary value multiplier.”
‘NOTHING MORE THAN A TRADE BARRIER’
While several trading partners apparently share the enthusiasm of Hansen and
Lollobrigida — the EU’s trade agreements with countries from South Korea to
Central America and Canada include protections for selected GIs — others view
the protections as, well, protectionist.
The U.S. has long been the system’s most vocal critic, with the Trade
Representative’s annual report on intellectual property protection calling it
out as “highly concerning” and “harmful.”
Washington argues that the rules undermine existing trademarks and that product
names like “fontina,” “parmesan” and “feta” are common and shouldn’t be reserved
for use by certain regions.
That reflects the U.S. dairy industry’s resentment towards Europe’s GIs: Krysta
Harden, U.S. Dairy Export Council president, argued they are “nothing more than
a trade barrier dressed up as intellectual property protection.” Meanwhile, the
National Milk Producers’ Federation blames the scheme, at least in part, for the
U.S. agri-food trade deficit.
American opposition to the system doesn’t stop at its own trade relationship
with the EU. The U.S. Trade Representative’s Office also accused the EU of
pressuring trading partners to block certain imports and vowed to combat the
bloc’s “aggressive promotion of its exclusionary GI policies.”
DOUBLING DOWN
Unfazed by the criticism, Hansen continues to tout geographical indications as
vital in the EU’s ongoing trade negotiations with other countries.
The EU’s long-awaited trade accord with the Latin American Mercosur bloc is
heading toward ratification and includes GI protections for both sides. Speaking
in Brazil last month, Hansen went out of his way to praise his hosts for
protecting canastra, a highland cheese, and cachaça, a sugarcane liquor, against
imitations.
Fifty-eight of the GIs protected under the agreement are Italian, Lollobrigida
told POLITICO. This protects Italy’s reputation for high-quality food, he said,
and ensures “that Mercosur citizens receive top-quality products.”
The EU recently concluded a deal with Indonesia which will protect more than 200
EU products, and a geographical indication agreement is actively being discussed
in talks on a free-trade deal with India that both sides hope to wrap up this
year. As negotiations with Australia pick up once again, the issue of GI cheeses
is expected to return to the spotlight.
The U.S. pushback on GIs in other countries has fallen on deaf ears, argued John
Clarke, the EU’s former lead agriculture negotiator. He criticized detractors
for peddling “specious arguments which bear no relationship to intellectual
property rights.”
American claims that some terms are universally generic are “illegitimate” and
ultimately “very unsuccessful,” in Clarke’s view.
“They came too late to the party,” he said, “and their arguments were not very
convincing from a legal point of view.”
CULTURE AND COMMERCE
The uptake of GIs in other countries demonstrates the additional value the
schemes can bring for rural communities and cultural heritage, Clarke posited.
In Valle d’Aosta, the GI system “keeps people and maybe also young farmers
linked to this region,” argued Cuaz, adding that young people leaving rural
areas in favor of urban centers is a real problem for her region.
From tournaments to find the “Queen” of the herd that are a highlight of summer
weekends to the “Désarpa” parade marking the end of the season as cows return to
the valley from their Alpine pastures, Fontina cheese production keeps
traditions alive in the tiny region every year. The dairy industry even plays a
role in making use of abandoned copper mines, where thousands of cheese wheels
mature annually.
Thousands of cheese wheels are matured the Valpelline warehouse, built in the
tunnels of a former copper mine. | Lucia Mackenzie/POLITICO.
Supporters of the GI scheme also point to the food and wine tourism
opportunities it offers. Les Cretes vineyard, winery and tasting room represent
one such success story.
The flavors imbued into traditional and native grape varieties by the soil of
the Valle d’Aosta’s high-altitude vineyards justify its inclusion as a
geographically protected product, explained Monique Salerno, who has worked for
the family business for 15 years and is in charge of tastings and events. The
premium price on the local wines is vital to keep the producers competitive,
given that the steep vines need to be picked by hand, she added.
The business expanded in 2017, building a tasting room to draw tourists to
Aymavilles, the town with a population of just over 2,000 that houses much of
the vineyard.
TARIFF TROUBLE
While American critics have, in Clarke’s view, “lost the war on terroir,”
Europe’s small-time food producers are not immune to the rollercoaster of
tit-for-tat tariffs that have dominated recent EU-U.S. trade negotiations.
Like the vast majority of European products heading to the U.S., cheese is
subject to a 15 percent blanket tariff. In the meantime, however, organizational
mishaps led to some temporary doubling of tariffs on Italian cheeses, angering
major producers.
The whole saga has caused uncertainty, said Ermes Fichet, administrative manager
of the Milk and Fontina Producers’ Cooperative.
The Les Cretes vineyard on the slopes surrounding Aymavilles. | Lucia
Mackenzie/POLITICO
The U.S. is Fontina’s largest overseas market, accounting for around 60 percent
of direct exports. However, producers aren’t fearing for their livelihoods, yet,
as most Fontina cheese isn’t exported at all: an estimated 95 percent of wheels
are sent to distributors in Italy.
Rather, the impact of U.S. trade policy is long term. The American market would
in theory be able to absorb all of Fontina’s production, Fichet explains, but
the sale of similar cheeses at lower prices there makes it difficult to expand
market share.
According to figures released by the USDA’s statistics service, over 5.1 million
kilos of “fontina” cheese was produced in Wisconsin alone in 2024. That comes
out to a higher volume than the 3.1 million kilos of GI-certified Fontina
originating in Valle d’Aosta annually.
And looking elsewhere isn’t an easy option for the small-time cheese makers,
even if future trade agreements include GI recognition.
While markets in countries like Saudi Arabia are growing, they would never close
the gap left by U.S. producers if trade ties worsen, said Fichet.
Responding to the foreign detractors, he highlighted the benefits from the
scheme at home. Fontina DOP “allows us to maintain the agricultural reality of
certain places … it’s an extra reason to try to help those who are committed to
carrying on with a product that is, let’s say, the little flower of the Valle
d’Aosta.”
Tag - Alcohol
A non-alcoholic beverage may not be sold as gin, the Court of Justice of the EU
ruled today in a case that could have wide-ranging consequences for a growing
sector catering to health-conscious consumers.
The case involved a drink being sold as Virgin Gin Alkolholfrei. The Luxembourg
court ruled that wording violated an EU law that says gin should be produced
with ethyl alcohol and juniper berries, with a minimum alcoholic strength by
volume of 37.5 percent.
The law is meant to protect gin producers from competition and consumers against
confusion, the court said in a statement.
The gin judgment comes as plant-based meat products gear up for a potential
labeling fight, depending on whether a controversial “veggie burger ban” makes
it through inter-institutional negotiations.
A German association for combating unfair competition brought the case against
PB Vi Goods, which manufactures the gin copycat. A German court referred the
case to the Court of Justice, which found a “clear prohibition in EU law”
because the beverage does not contain alcohol. The product can be sold, but not
as “gin,” regardless of whether or not it uses terms like “non-alcoholic” or
“virgin.”
The top EU court has upended consumer trends in the past: it ruled against
calling plant-based products “milk,” “cream,” “butter,” “cheese” or “yogurt”’”
in 2017.
PARIS — French lawmakers of a nervous disposition, look away now … a member of
parliament wants to ban the sale of alcohol in the National Assembly bar!
According to a report seen by POLITICO’s Paris Playbook, Emmanuel Duplessy, of
the leftist Génération.s party, wants not only to stop the bar from selling
booze but also to prohibit MPs from claiming alcohol as part of their food and
drink expenses.
The sale of alcohol “in a workplace raises many questions among the French,”
Duplessy said.
Duplessy isn’t the first MP to try and sober up French politics. In May, Green
Party leader Cyrielle Chatelain suggested banning alcohol in parliament in the
evenings.
Arthur Delaporte, a Socialist MP who heads the association that manages
the National Assembly’s eateries, said prices in the bar had increased, but if
alcohol is excluded from expense claims for lawmakers, then the same rule should
apply to “all companies for it to be acceptable.” That, he added, would “cause a
stir among lawyers.”
Alcohol sales in the lower house of parliament’s bar generated around €100,000
in revenue last year (although there was a pause of around three months in
legislative business after the dissolution of parliament).
French lawmakers might want to ask their Belgian colleagues for tips about
non-alcoholic debates. Beer and wine have been banned in the Belgian federal
parliament’s cafeteria since May.
Alcohol has been enjoyed in societies for thousands of years, playing a role in
celebrations and gatherings across the world. While misuse continues to cause
harm, it’s encouraging to see that, according to World Health Organization data,
trends are moving in the right direction. Consumers are better informed and
increasingly aware of the benefits of moderation.
While Diageo is only relatively young — founded in 1997 — our roots run deep.
Many of our brands date back centuries, some as far back as the 1600s. From
iconic names such as Guinness and Johnnie Walker to modern innovations like
Tanqueray 0.0, we are proud to continue that legacy by building and sustaining
exceptional brands that resonate across generations and geographies. We want to
be one of the best performing, most trusted and respected consumer products
companies in the world — grounded in a strong sense of responsibility.
That means being transparent about the challenges, proactive in promoting
responsible drinking, and collaborative in shaping the future of alcohol policy.
We are proud of the progress made, but we know there is more to do. Lasting
change requires a whole-of-society approach, bringing together governments,
health experts, civil society and the private sector.
We believe a more balanced, evidence-based dialogue is crucial; one that
recognizes both the risks of harmful drinking and the opportunities to drive
positive change. Our brands are woven into cultural and social traditions around
the world, and the industry contributes significantly to employment, local
economies and public revenues. Recognizing this broader context is essential to
shaping effective, proportionate and collaborative alcohol policies.
Public-private collaboration brings together the strengths of different sectors,
and these partnerships help scale impactful programs.
> We believe a more balanced, evidence-based dialogue is crucial; one that
> recognizes both the risks of harmful drinking and the opportunities to drive
> positive change.
Across markets, consumers are increasingly choosing to drink more mindfully.
Moderation is a long-term trend — whether it’s choosing a non-alcoholic
alternative, enjoying fewer drinks of higher quality, or exploring the choice
ready-to-drink formats offer, people are drinking better, not more, something
Diageo has long advocated. Moderation is not a limitation; it’s a mindset. One
of the ways we’re leading in this space is through our expanding non-alcoholic
portfolio, including the acquisition of Ritual Beverage Company in the US and
our investment in Guinness 0.0. This growing diversity of options empowers
individuals to choose what’s right for them, in the moment. Moderation is about
choice, and spirits can also offer creative ways to moderate, such as mixing
alcoholic and non-alcoholic ingredients to craft serves like the ‘lo-groni’, or
opting for a smaller measure in your gin and tonic.
Governments are increasingly taking proportionate approaches to alcohol
regulation, recognizing the value of collaboration and evidence-based policy.
There’s growing interest in public-private partnerships and regulatory
rationality, working together to achieve our shared goal to reduce the harmful
use of alcohol. In the UK, underage drinking is at its lowest since records
began, thanks in part to initiatives like Challenge 25, a successful
public-private collaboration that demonstrates the impact of collective,
targeted action.
> Moderation is not a limitation; it’s a mindset.
Diageo has long championed responsible drinking through campaigns and programs
that are measurable and scalable. Like our responsible drinking campaign, The
Magic of Moderate Drinking, which is rolled out across Europe, and our programs
such as Sober vs Drink Driving, and Wrong Side of the Road, which are designed
to shift behaviors, not just raise awareness. In Ireland, we brought this
commitment to life at the All Together Now music, art, food and wellness
festival with the launch of the TO.0UCAN pub in 2024, the country’s first-ever
non-alcoholic bar at a music festival. Serving Guinness 0.0 on draught, it
reimagined the traditional Irish pub experience, offering a fresh and inclusive
way for festival-goers to enjoy the full energy and atmosphere of the event
without alcohol.
Another example comes from our initiative Smashed. This theatre-based education
program, developed by Collingwood Learning and delivered by a network of
non-government organizations, educates young people and helps them understand
the dangers of underage drinking, while equipping them with the knowledge and
confidence to resist peer pressure. Diageo sponsors and enables Smashed to reach
millions of young people, teachers and parents across the globe, while ensuring
that no alcohol brands of any kind are mentioned. In 2008, we launched DRINKiQ,
a first-of-its-kind platform to help people understand and be informed about
alcohol, its effects, and how to enjoy it responsibly. Today, DRINKiQ is a
dynamic, mobile-first platform, localized in over 40 markets. It remains a
cornerstone of our strategy.
> Diageo has long championed responsible drinking through campaigns and programs
> that are measurable and scalable.
In the UK, our partnership with the Men’s Sheds Association supports older men’s
wellbeing through DRINKiQ. Most recently, this collaboration expanded with
Mission: Shoulder to Shoulder, a nationwide initiative where Shedders are
building 100 buddy benches to spark over 200,000 conversations annually. The
campaign promotes moderation and connection among older men, a cohort most
likely to drink at increasing or higher risk levels. Across all our
partnerships, we focus on the right message, in the right place, at the right
time. They also reflect our belief that reducing harmful drinking requires
collective action.
Our message is simple: Diageo is ready to be a proactive partner. Let’s build on
the progress made and stay focused on the shared goal: reducing harm. With
evidence-based policies, strong partnerships and public engagement, we can
foster a drinking culture that is balanced, responsible and sustainable.
Together, we can make real progress — for individuals, communities and society
as a whole.
Mortality rates for young adults have increased in Eastern Europe over the past
decade, despite global death rates falling.
Drug-use, suicide and war are among the causes of death that are rising in
Eastern Europe, while earthquakes and climate-related disasters have also pushed
up death rates in the region.
The Global Burden of Disease report — published in The Lancet on Sunday and
presented at the World Health Summit in Berlin — analyzed data from more than
200 countries and territories to estimate the leading causes of illness,
mortality and early death worldwide from 1990 to 2023.
Between 2000 and 2023, there was a notable rise in deaths among younger adults
in Eastern Europe caused by HIV, self-harm and personal violence. In Central
Europe, deaths from mental disorders and eating disorders have also risen
sharply among teens over the decade.
This reflects a global trend — a rise in mental health disorders, with worldwide
rates of anxiety increasing by 63 percent and of depression by 26 percent.
“The rise of depression and anxiety is very concerning,” coauthor Chris Murray,
director of the Institute for Health Metrics and Evaluation (IHME) at the
University of Washington, told POLITICO. “We hear a lot of debate as to what the
root causes are … but we certainly need to pay attention to try to figure out
what’s driving the rise. “
The report shows some overall positive trends: Global mortality rates dropped by
67 percent between 1950 and 2023 and global life expectancy in 2023 was more
than 20 years higher compared to 1950.
But despite the improvements, the study also highlights “an emerging crisis” of
higher death rates in teenagers and young adults in certain regions.
In North America and Latin America, for example, deaths among young people
increased significantly from 2011 to 2023, mainly due to suicide, drug overdose
and high consumption of alcohol. In sub-Saharan Africa, they increased due to
infectious diseases and unintentional injuries.
In Eastern Europe, the largest increases in mortality were among those aged
15-19 year and 20-24 years, with rates increasing by 54 percent and 40 percent,
respectively, between 2011 and 2023.
The report also tracks leading causes of mortality worldwide. It found that
non-communicable diseases (NCDs) now account for nearly two-thirds of the
world’s total mortality and morbidity, led by ischemic heart disease, stroke and
diabetes.
In particular, in lower-middle and upper-middle income countries there is a
“very rapid transition towards non-communicable diseases,” said Murray, driven
by factors such as an aging population, slow or no progress on tobacco and air
pollution, and rising levels of obesity.
In Central Europe and North America, these chronic diseases were primarily
driven by an increase in drug use disorders, according to the report. Diabetes
and kidney disease also largely contributed to the increase in Central Europe,
along with several other regions. “Addressing these trends requires targeted
public health interventions, improved health-care access, and socioeconomic
policies to mitigate the underlying risk factors,” the report authors urge.
The researchers estimate that half of all deaths and disability could be
prevented by tackling high levels of blood sugar, overweight and obesity, for
example.
The report also points out how conflict has “begun to shift from north Africa
and the Middle East to central Europe, eastern Europe, and central Asia,” in
recent years due to Russia’s war in Ukraine. This has led to a rise in
injury-related deaths. Palestine had the highest mortality rate due to conflict
and terrorism of any country in the world.
While injury-related deaths caused by specific natural disasters, such as the
2023 earthquake in Turkey and the 2022-23 heatwaves in Europe, are also on the
rise. “In central and eastern Europe, heatwaves have been occurring more
frequently over the past decade,” the authors said.
HORSENS, Denmark — Estonia is opposed to a push by the European Union to take
further action to restrict kids’ access to social media, its digital minister
told POLITICO in an interview.
The intervention comes as most European Union countries fall in line behind
plans for a digital age of majority across the EU, which could restrict children
below a certain age from accessing social media platforms and would be the
strongest move yet to protect kids online.
A declaration expressing support for the general idea of a digital age of
majority was tabled at a ministerial meeting in Denmark on Friday. Estonia and
Belgium declined to sign, while the rest of the EU countries, plus Norway and
Iceland, did.
“Estonia believes in an information society and including young people in the
information society,” Estonia’s minister of justice and digital affairs,
Liisa-Ly Pakosta, told POLITICO.
Tallinn is in favor of enforcing existing rules designed to offer protections,
such as the EU’s General Data Protection Regulation, rather than changing the
current age restrictions, Pakosta said. That bans children under 13 from
consenting to their data being processed, with countries able to increase that
threshold.
An age limit on social media would be a “very easy thing to do,” but countries
should instead invest in better education for the digital age, she said.
“Estonia believes in an information society and including young people in the
information society,” said Pakosta.
If one in 10 children has “problematic” use of social media, as the declaration
cites, then the government should figure out what is not working for these
children, she added.
Not setting a minimum age threshold for social media is an “easy way out,”
because “it is a difficult decision to make and I can see it on a national
level,” Caroline Stage Olsen, Denmark’s minister for digital government, told
POLITICO when asked about Estonia’s decision not to sign the EU-wide commitment.
A digital age of majority may be a “radical move” but it is “needed when we look
at the numbers of our children’s well-being,” said Stage Olsen.
Denmark has spearheaded the declaration as part of its presidency of the Council
of the EU.
Belgium’s minister for public modernization, Vanessa Matz, said in a statement
that the country did not sign the declaration because the Flanders region vetoed
it.
But she said her presence at the meeting in Denmark demonstrates Belgium’s
“determination to advance this fight for a safer internet.”
While the Netherlands signed the declaration, it also expressed reservations
about the content, particularly regarding provisions on age verification. It’s
an “intrusive” measure that should always be proportionately applied,
Digitalisation Minister Eltje van Marum said in an interview.
“For services or products with legal age restrictions and proven harm to
children — such as alcohol and tobacco — the use of age verification is more
easily justified, and in some cases even legally required, such as with online
gambling,” he said.
The criticism follows an escalation of the debate about EU-wide action. European
Commission President Ursula von der Leyen last month came out strongly in favor,
and convened a panel of experts to study whether and how to implement a social
media ban. But legal experts agree it’s up to national governments, not the EU,
to set age restrictions.
The Danish government announced plans this week to introduce parental controls
for several social media platforms for children under the age of 15.
Tech industry lobbies and child rights groups have expressed skepticism about
the effectiveness of social media bans.
BRUSSELS — Ursula von der Leyen is so set on getting her grandkids off social
media she forgot to do her homework.
The European Commission chief made waves in recent weeks when she came out in
favor of a European Union minimum age for using social media — twice. Citing
strong pressure from EU capitals for a “digital majority” age, von der Leyen
said at an event in New York that “as a mother of seven children, and
grandmother of five, I share their view.”
“We all agree that young people should reach a certain age before they smoke,
drink or access adult content. The same can be said for social media,” she said.
But von der Leyen has so far overlooked a simple fact: It’s up to national
governments, not the EU, to set age restrictions for alcohol and tobacco. The
Commission can coordinate rules about health but cannot harmonize them,
according to the legal treaties of the bloc.
“There is a significant question of whether [banning social media] is even
something that the European Union has the power to do,” said Peter Craddock,
partner at Keller & Heckman law firm in Brussels. Craddock currently offers
legal services to social media companies.
Von der Leyen said in her annual State of the Union speech that she will task a
panel of experts to study whether to implement a social media ban and how to do
it.
There’s a lot to figure out, such as how much “autonomy” to give EU countries
and whether they should be allowed to set their own age, whether “it’s a full
ban or a partial ban for certain functionalities or certain types of
interactions,” Craddock said.
Commission spokesperson Thomas Regnier in June said that an EU-wide ban “is not
what the European Commission is doing. It’s not where we are heading to. Why?
Because this is the prerogative of our member states.”
For many, that hasn’t changed. “Currently, we don’t see any legal basis for a
harmonized social media ban for children at EU level,” said Fabiola Bas
Palomares, lead policy and advocacy officer at Eurochild, a children’s rights
group.
MANY LAWS, NO SOLUTIONS
The EU’s flagship privacy regulation, the General Data Protection Regulation
(GDPR), was one legal route the Commission previously suggested as a possible
avenue.
The GDPR sets the age of 13 as the lowest possible age when minors can consent
to their personal data being processed — something that happens on all social
media platforms. But the law allows for different countries to raise the bar.
But experts have pointed out this doesn’t really work as an instrument to impose
a digital majority age.
The GDPR sets the age of 13 as the lowest possible age when minors can consent
to their personal data being processed — something that happens on all social
media platforms. | Nicolas Guyonnet/Hans Lucas/AFP via Getty Images
Craddock pointed out that a country can end up in a situation where laws on
processing personal data are “less permissive” than access to social media, or
vice versa. “Then you have to be able to justify that,” he said.
The GDPR still shows that EU legislators “were able to at least have a range” of
ages for restrictions, said Urs Buscke, senior legal policy officer at umbrella
consumer organization BEUC. She said this is where things could go for social
media restrictions too.
Another legal avenue is a revision of the EU’s Audiovisual Media Services
Directive, a law that applies to video-sharing platforms — which effectively
covers most social media. The law will be reviewed next year and stronger
protections for minors are on the table.
But, in EU speak, that law is a directive and not a regulation, meaning
countries have a lot of leeway in how to apply it. It is also focused on keeping
kids away from adult content, not off social media altogether, said Bas
Palomares.
There are guidelines under the Digital Services Act, but those guidelines are
non-binding and help platforms comply with the EU’s landmark online safety law.
Released this summer, the latest version still leaves age restrictions up to EU
countries. The guidelines are reviewed annually, so the Commission could look to
tighten the screws on platforms next year. But Regnier stressed last week that
the Digital Services Act “is not the legal basis that will allow us to set the
minimum age” for social media.
There’s also the Digital Fairness Act, an upcoming revamp of consumer law, which
will include provisions on protecting vulnerable consumers, including minors.
Buscke, who specializes in consumer law, said this is unlikely to include a
social media ban.
Craddock said it’s too late to tack a social media ban onto that revamp as
consultations are already ongoing and such a measure would require large-scale
studies.
CAN THEY, SHOULD THEY?
Warnings about the health dangers of kids’ addictions to social media have piled
up — from the EU’s top leadership and governments all the way to health
authorities and tech regulators.
But despite the momentum, some experts doubt an outright ban is the right way to
go.
Bas Palomares said a ban is incongruous with children’s rights to “protection,
information, education, freedom of expression, play” which are “substantially
enabled” by social media.
“A social media ban would mean a disproportionate restriction of children’s
rights and perhaps push them toward situations of greater risk and lower
supervision,” she said. “Before resorting to arbitrary age restrictions, the EU
should focus on leveraging and complementing the tools we already have.”
On the edge of Burgenland, Austria, Werner Michlits Jr. is busy harvesting
grapes. That’s a welcome distraction from the waiting game EU-U.S. trade
negotiations have put him and other winemakers in, wondering if they’ll lose
their most lucrative market.
Winemakers in Europe and their import and distribution partners in the U.S. are
facing twin crises: a 15 percent tariff on European wine entering the U.S. and a
declining dollar. Many American importers stocked up on wine ahead of an Aug. 1
tariff deadline, leaving them cash-strapped for the next few months and placing
winemakers in a holding pattern while trade negotiations continue.
Michlits, who runs the Meinklang farm and winery with his wife and parents,
exports more than a third of its wine to the U.S. Some importers have asked if
he can lower prices to offset tariffs.
“But it’s impossible. We are already at our maximum,” he said. “It’s a little
bit sad, because we have so much invested in this relationship. In the end, it’s
the consumers in America that have to pay, or they will drink other wines.”
European exporters have long benefited from tariff-free access to the American
market on most alcohol and had hoped they would win an exemption in the trade
deal struck this summer.
A 15 percent rate isn’t as bad as it could have been. President Donald Trump at
one point threatened 200 percent.
“From one day to the next, our exports stopped for an entire month,” said
Ignacio Sánchez Recarte, secretary-general of European Committee of Wine
Companies, or CEEV, which represents EU wine companies.
But it’s still significant. CEEV estimates that the wine industry could lose
€800 million to €1 billion over the next year. It’s not only that Europeans will
stop sending wines, but producers will also earn less on the wines they are
sending.
Lamberto Frescobaldi, one of the largest wine producers in Italy, said the
average price of Italian wine being sent to the U.S. has dropped 10 percent over
the past three months.
“It kills me to think we would be less involved in the U.S. For many Italians,
the U.S. has been the country of home, opportunity. It is a very, very difficult
thing that we are not a good guest any longer there,” said the 30th-generation
Florentine winemaker.
‘A FRAGILE AND SCARY TIME’
Across the ocean, it’s killing their counterparts, too.
“A wine that a restaurant bought in November of last year is going to be 35
percent more expensive this year,” said Ben Aneff, president of the U.S. Wine
Trade Alliance, citing tariffs and the plunging dollar. “It’s hard to overstate
the problem we expect that to start causing.”
European winemakers exported more than €4.88 billion worth of wine in 2024 to
the U.S., their largest destination market. In parallel, for every dollar
generated by wine exporters, American distribution and hospitality sectors earn
$4.50, the European industry estimates.
Importers and distributors have been hit hardest so far. Aneff said that
European wines account for 75 percent of the industry’s profits. Most
distributors have halted all hiring, and some have started layoffs.
Harry Root, owner of Grassroots Wine in Charleston, South Carolina, focuses on
small, family-owned wineries around the world, with about 60 percent of them in
Europe. At this time last year his business was growing 13 percent year-on-year.
This year, sales are flat.
“And the only reason it’s flat is because we’ve had competitors going out of
business. It’s a fragile and scary time,” Root said.
His strategy for the rest of the year is to be more conservative with his
European buying. But like most importers, he bought as much as possible before
tariffs took effect.
BAD FOR EUROPE, BAD FOR THE U.S.
This causes other issues though, particularly for American wineries.
“Subsequently, we have had to slow purchase from American producers because we
have so much capital tied up in tariffs and EU wine,” said Root.
The way wine sales work in the U.S. goes back to the Prohibition era a century
ago, when most states implemented what’s known as the three-tier system.
Wineries sell to distributors, who sell to retailers and restaurateurs, who sell
to consumers.
Even if a retailer really wants a certain domestic wine, or has a good
relationship with a winemaker, they cannot go out and purchase that wine on
their own.
“No other product in the country is sold this way,” said Aneff. “Distributors,
who sometimes make up to 65 percent of revenue from imported wine, when they get
a huge tariff bill, they buy less, including less American wine. Last time this
happened, we had U.S. wineries who lost their distribution in states like New
York because distributors had financial issues caused by tariffs.”
That’s why American wine groups including Napa Valley Vintners, The Wine
Institute, Wine America, and the National Association of Wine Retailers have
sent a joint letter to Trump asking him to reconsider his European tariffs. They
warned that the 15 percent tariff rate could reduce American alcohol sales by
nearly $2 billion and put 25,000 U.S. jobs at risk.
“We import about $4.5 billion of European wine a year, resulting in $23 billion
worth of sales in the U.S.,” said Aneff. “That surplus goes to the 6,000
importers and distributors who have employees, to independent retailers, to
hundreds of thousands of restaurants and their employees. There is no other
imported product that would have economics like that.”
The wine world is in trouble not only because of tariffs. Climate change and
extreme weather events and declining consumption are threatening the industry in
both Europe and the U.S. But those are long-term problems, while this is
immediate.
WHAT CONSUMERS WANT
The next few months will be telling as consumers grapple with higher prices.
Wine is not fungible: the whole point of terroir is that wine is distinct, and
of a place. A Pinot Noir from Burgundy is not the same as a Pinot Noir from
Oregon. Both can be fantastic, but they’re different.
“The flat reality is that when someone wants a burgundy from France, that’s what
they want. If you go to the grocery store and want strawberries and they say
‘Here’s tomatoes,’ that’s not the same thing,” said Aneff.
He’s had to raise prices on effectively everything at Tribeca Wine Merchants,
his wine shop in New York City, to offset tariffs — even on U.S. wines.
But not everyone sees doomsday ahead. Peter Eizel, wine buyer at Martha’s
Vineyard, a busy wine shop in Grand Rapids, Michigan, said he thinks consumers
are willing to pay a couple dollars more for European wines.
He stocked up earlier this year, but there are some bottles you can only buy in
certain seasons, like Beaujolais Nouveau. He ordered his cases a few weeks ago
and said wines that he would normally sell for $10 will go for $11.99. He
expects them to still fly off the shelves.
“If I said to someone, ‘Well the price of X, Y, Z wine is gonna go up $2 or $5,
but I have this other wine from this country over here and it’s quality-wise
about the same, and I can get it to you $4 cheaper,’ my customers will say, ‘I
don’t care that it’s cheaper, it tastes different,’” he said.
The organizers of Vinitaly, the world’s largest wine show, are betting he’s
right. Vinitaly has run in Verona for 58 years, but this October will stage its
fair in Chicago for the second time. Adolfo Rebughini, general manager of
Veronafiere, which organizes Vinitaly, expects about 1,600 U.S. buyers in
Chicago this year — a strong number despite the situation.
“We’re going full steam ahead with the U.S. because it is such a critical market
for Italian wine producers,” Rebughini said.
Italian wine exports to the U.S. account for roughly €2 billion per year,
according to Rebughini. Veronafiere estimates the Italian wine sector could lose
€317 million per year, but if the dollar keeps weakening that could reach €450
million.
Certain wines are more at risk. Sixty percent of all Moscato d’Asti is exported
to the U.S., 48 percent of all Pinot Grigio and 46 percent of all Chianti.
Some European wineries are looking outside the U.S., particularly to Canada,
Mexico and Brazil. They welcome the EU’s deal with the South American Mercosur
bloc and are excited about a prospective free-trade accord with India, where
wine is currently taxed at 150 percent nationally, plus state taxes. But any
benefit from those deals could be years away.
“We try to compensate with other markets, but there is no way that any other
trade alternative that the EU could have could compensate for the losses of the
U.S.” said Recarte of CEEV. “We understand that the Commission has been
supporting us strongly, asking wines and spirits to have a special status in the
second package.”
Trade Commissioner Maroš Šefčovič told European lawmakers last week that he was
working to expand exemptions on the 15 percent U.S. tariffs to include wine and
spirits, signaling that no progress has yet been made.
For now, winemakers are living in limbo.
“We all still hope this disappears as fast as it appeared,” said Michlits,
pausing the harvest for a rain break. “We all want tariffs to go away.”
Poland wants to ban shop booze sales at night to curb excessive drinking, cut
crime and prevent ill health, after Warsaw city tried and failed to outlaw them.
Prime Minister Donald Tusk’s coalition partners — The Left and centrist Poland
2050 — have submitted legislative proposals including broad alcohol advertising
bans, outlawing off-license sales from at least 10 p.m. to 6 a.m. and curbs on
alcohol sales at petrol stations and online.
The coalition partners say these measures, consistent with World Health
Organization recommendations, are among the most effective tools to prevent
alcohol-related poor health, such as cancer and mental health disorders. Latvia
enforced similar measures from August.
EU health data places Poland among the bloc’s worst performers on
alcohol-related mortality: The country ranked second in the EU for
alcohol-attributable deaths, behind Slovenia, in 2022, Eurostat said in March.
The push for a nationwide ban follows the collapse of plans for a citywide
proposal in Warsaw, after the local council threw out the measure over failure
to agree.
Warsaw’s failed attempt highlights the divergence between political groups on
such public health measures, even inside Tusk’s ruling coalition. Councilors
rebelled against the proposal tabled by their own mayor, Rafał Trzaskowski,
arguing it impinged civil liberties. Trzaskowski pledged to keep trying to
institute the ban.
It also comes as global leaders failed to agree to a political declaration to
curb chronic diseases, such as those caused by drinking, underscoring the
difficulty in agreeing to proven public health measures in a politically divided
arena.
In Poland, Warsaw city’s policy failure came despite overwhelming support among
the local Varsovians when the city hall had tried to gauge the mood among
people.
Warsaw’s failed attempt highlights the divergence between political groups on
such public health measures, even inside Donald Tusk’s ruling coalition. |
Jonathan Raa/Getty Images
Joanna Wicha, an MP for The Left, told POLITICO many local governments often
lack determination and courage to ban nighttime booze sales. “That is why a
top-down ban is needed,” she said. She hinted Tusk’s backing could help make the
bans reality.
Currently, the proposals are undergoing public consultation and the parliament
is expected to begin work on them in late October or early November, she said.
SATURATED
Poland is awash with booze shops.
There were nearly 119,000 shops selling alcohol in Poland at the end of 2023,
from small privately owned stores to large grocery chains, to 24-hour gas
stations, Poland’s health ministry said in January.
By contrast, Sweden has 900 alcohol stores, one per roughly 11,000 people,
compared with one for every 320 people in Poland.
To date, some 180 Polish municipalities already operate some form of nighttime
prohibition, including in Kraków — Poland’s top tourist destination.
Warsaw eventually ended up passing trial bans in two of the city’s 18 districts,
but critics say it’s nowhere near effective.
In locations where bans have been in place, police reports say the effects have
been positive — less crime, more security in the streets and fewer patients at
emergency wards — according to local media.
“I would prefer local governments to follow the example of those that
consistently try to counter the effects of what I call ‘liberal alcoholism,’
Especially in big cities, the presence of drunk people late at night near homes
or in city centers is anything but pleasant,” Tusk said Sept. 22.
The Left’s draft would ban sales at petrol stations and in long-term
rehabilitation facilities and impose a 10 p.m.–6 a.m. national ban, with the
option for local councils to widen the restriction to start at 9 p.m. and end at
9 a.m. It would also mandate age checks for every purchase and forbid selling
below the combined level of excise and VAT, as is often the case in supermarket
promotions.
Poland 2050 also wants to let local authorities extend bans to 9 a.m. and to
adjust licenses that have not been changed in 23 years.
FEW INCENTIVES TO DRINK LESS
The country’s National Center for Counteracting Addictions, or KCPU, a
government agency coordinating policies on drug and alcohol abuse, estimates the
social cost from alcohol in Poland at roughly 93 billion złoty (€21.8 billion) a
year, compared with just 14 billion złoty in excise revenues.
Poland’s per-capita consumption of pure alcohol stood at 8.8 liters in 2024,
dropping steadily from 9.7 liters in 2021 due to lower beer consumption,
according to KCPU data. Spirits, meanwhile, have held steady. WHO data shows
Poles drink more than the bloc’s average.
Cheap booze may be a reason: In 2024, an average monthly wage would buy about
2,103 half-liter bottles of beer — the highest since at least 2002.
Affordability of other alcohol types has also been rising.
By contrast, Sweden has 900 alcohol stores, one per roughly 11,000 people,
compared with one for every 320 people in Poland. | Xavi Lopez/Getty Images
The drinks industry has mobilized against sweeping curbs. “The proposed bill is
a populist overregulation drafted in a wave of emotion and a chaotic set of
changes that do not account for consumption trends or market realities,” Browary
Polskie said in a statement.
The brewers’ lobby argues beer volumes have been sliding for years: Sales have
fallen some 15 percent over six years, and in the first nine months of this year
the category declined a further 7-8 percent, while beer prices rose around 45
percent in recent years. Browary Polskie also complained that the draft would
sweep in nonalcoholic beer — a product that, they say, helps reduce alcohol
intake — and hit domestic brewers disproportionately.
“Entrepreneurs are again surprised by legislative initiatives that threaten
business stability,” Karol Stec, head of the spirits industry employers’ group,
told the national newswire PAP.
BRUSSELS — EU exporters of wine and spirits will be able to sell their booze in
Indonesia — but the bloc wants to keep it quiet.
After years of talks, the EU and Indonesia announced Tuesday morning that they’d
concluded negotiations on a trade deal, and Jakarta agreed for the first time to
open up its alcohol market to Europe. However, under pressure from negotiators
in Indonesia — the world’s largest Muslim-majority country — Brussels has agreed
not to make a fuss about it.
There’s not a single mention of it in the Commission’s official communications
on the deal.
“We are not publicizing it too loudly because of the sensitivity for our
partners,” a senior EU official told POLITICO. The official was granted
anonymity to speak freely, as were others quoted in this piece. “You asked the
question, so I’m answering — but we didn’t want this in the headlines.”
Behind the scenes, EU negotiators describe a tense balancing act — securing
commercial wins for European exporters while treading carefully around
Indonesia’s strict cultural and religious stance on alcohol.
“Some delegates on the other side were like, ‘I’m risking my life doing this
deal,’” said another EU official, describing how their counterparts asked
to avoid publicizing the alcohol-related provisions and omit them completely
in any form of communication.
A QUIET UNCORKING
The quotas are modest — 1,985 tonnes for wine and 400 tonnes for spirits — and
come with a duty of 5 percent. But in a country where alcohol imports have long
been taboo, even this incremental market access marks a symbolic shift.
The deal was struck using tariff rate quotas (TRQs), which allow a fixed volume
of goods to enter at lower tariffs, with higher rates of 90 percent on wine and
150 percent on spirits kicking in beyond that threshold.
While the quotas themselves are small, they represent a long-sought entry point
into Indonesia for European producers.
To further downplay the move, EU officials even opted to present the volumes in
tonnes — rather than the more industry-standard hectolitres — in what one EU
official said was a deliberate attempt to “keep the numbers looking smaller.”
According to another EU official, Jakarta even offered to give the EU the booze
quotas. “It’s a huge concession to get them from Indonesia, which never offered
concessions on alcohol to any partner,” the official said.
BOOZE AND BALI
Indonesia has one of the lowest alcohol consumption levels in Southeast Asia —
just 0.1 liters of pure alcohol per capita per year. Access to alcohol is highly
restricted outside of major cities and tourist enclaves, and public sentiment on
liberalization is overwhelmingly negative.
But in Bali — the country’s most tourism-heavy province — demand for alcohol is
anything but symbolic.
With more than 1.53 million Australians visiting Indonesia in 2024 — up 17
percent from the previous year — European negotiators made a clear pitch: Target
tourist hubs like Bali, where alcohol is already flowing, and supply them with
European products.
“We aim at targeting tourists there,” the first EU senior official said.
The Indonesian embassy did not reply to a request for comment.
The result of the agreement is a diplomatic sleight-of-hand: a win for European
exporters — just not one Brussels is boasting about.
But with exporters eyeing the opportunity, the bottle may be too open to cork
back.