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EUROPEAN UNION

Trump’s top EU pick warns German media of ‘seismic shift’ in ties

Ted Malloch, President Donald Trump's reported choice of US ambassador to the EU, predicts "seismic shifts" in transatlantic ties and the bloc's disintegration, in comments to a German news weekly published Friday.

Trump's top EU pick warns German media of 'seismic shift' in ties
Photo: DPA

After last year's Brexit vote for Britain to leave the EU, he told Der Spiegel that “you can almost put any two letters in front of the word exit”, suggesting any of the other 27 member states could be next.

In early excerpts of an interview to be published in full Saturday, Malloch also predicted “seismic shifts” in US-European relations under Trump.

He said Trump preferred to deal bilaterally with European countries rather than the bloc as whole, adding that “frankly, this also gives us the upper hand”.

He also reiterated his view that the European common currency was a mistake and that, if he were working for an investment bank, he would “bet against the euro”.

European Parliament leaders on Thursday urged the EU to reject Malloch if he is named Trump's ambassador to Brussels, calling him hostile to the bloc.

The leaders of the main parliamentary groups said Malloch, whom they called Trump's likely choice, has openly backed the dissolution of the European Union much like the collapse of the Soviet Union.

“These statements reveal outrageous malevolence regarding the values that define this European Union,” they wrote.

Trump himself called Brexit “a great thing” last month and predicted that other countries would follow Britain out of the bloc.

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EUROPEAN UNION

KEY POINTS: Is the EU really planning to double the price of Swedish snus?

Claims over the weekend that the EU planned to bring in a new tax which will nearly double the price of Swedish 'snus' tobacco led to the hashtag #Swexit trending over the weekend. But a commission spokesman stressed on Monday that the story was inaccurate.

KEY POINTS: Is the EU really planning to double the price of Swedish snus?

Where does the claim come from? 

The Aftonbladet newspaper on Sunday ran a story based around a “secret, leaked” proposal from the European Commission for a new excise tax on tobacco which the newspaper claimed would be presented at the start of next month, with discussion then taking place between various EU member states. 

The article does not name a source or quote from or show any parts of the document, but it quotes Patrik Hildingsson, the head of communications at the snus producer Swedish Match, who it says has “received the coming report”. 

What was the reaction? 

The story generated a near viral response on Swedish Twitter. The Sweden Democrats party jumped on the story, with the Twitter account for the party’s EU MEPs tweeting using the hashtag #Swexit, which then started to trend. 

According to Charlie Weimers, one of the Sweden Democrats’ MEPs, the commission is proposing a 12.5 percent increase in tax on cigarettes, a 200 percent increase in taxes on snus, and 500 percent increase in taxes on tobacco-free snus.

In a way, this is unsurprising as snus is used by about 17 percent of people in Sweden. The tobacco product is made by grinding up tobacco with flavourings and other ingredients and placing it in small bags which are pushed under the upper lip. It has been linked to a higher incidence of mouth cancer, but is much less dangerous than smoking. 

Why is snus sensitive for Sweden? 

When Sweden joined the European Union in 1995, it was granted an exemption from the ban on oral tobacco products the European Union had brought in back in 1992. Companies are allowed to manufacture snus in Sweden and sell it to their citizens, but they are not allowed to sell snus in other EU counties.  

Is it true that the European Commission plans to force higher tax on snus? 

Dan Ferrie, a European spokesperson on tax issues, told the EU’s daily press briefing on Monday that the commission’s coming proposals on tobacco taxation would not affect Sweden’s freedom to tax the product. 

“Sweden has had an exemption since it entered the EU when it comes to the sale of snus,” he said. “The proposal that we are working on right now is not going to change that situation because the sale of snus is not permitted outside Sweden. Sweden ill as a result continue to have full freedom to set its own tax rate and tariffs for snus.” 

Already on Sunday, Sweden’s EU commissioner Ylva Johansson said that she had stressed to the commission developing the new proposals the “unreasonable consequences for Swedish snus” if it were to force a higher tax rate. 

“My judgement is that this proposal has not yet been developed to the level where it can be proposed,” she said in an sms to Swedish state TV broadcaster SVT. “Tax questions require unanimity within the Ministerial Council.”

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