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Minimum alcohol pricing plan 'may breach EU law' Minimum alcohol pricing plan 'may breach EU law'
(35 minutes later)
A European court has said the Scottish government's case for a minimum unit price for alcohol is contrary to EU law if other tax options exist.A European court has said the Scottish government's case for a minimum unit price for alcohol is contrary to EU law if other tax options exist.
The European Court of Justice ruling instead recommends the introduction of alternative tax measures.The European Court of Justice ruling instead recommends the introduction of alternative tax measures.
The Scotch Whisky Association (SWA) and First Minister Nicola Sturgeon have both welcomed the ruling.The Scotch Whisky Association (SWA) and First Minister Nicola Sturgeon have both welcomed the ruling.
The legislation to bring in a minimum price of 50p per unit was passed by the Scottish Parliament in May 2012.The legislation to bring in a minimum price of 50p per unit was passed by the Scottish Parliament in May 2012.
A legal challenge was brought by the SWA, which argued the Scottish government's legislation breached European law.A legal challenge was brought by the SWA, which argued the Scottish government's legislation breached European law.
The European court ruling said: "The Court of Justice considers that the effect of the Scottish legislation is significantly to restrict the market, and this might be avoided by the introduction of a tax measure designed to increase the price of alcohol instead of a measure imposing a minimum price per unit of alcohol."The European court ruling said: "The Court of Justice considers that the effect of the Scottish legislation is significantly to restrict the market, and this might be avoided by the introduction of a tax measure designed to increase the price of alcohol instead of a measure imposing a minimum price per unit of alcohol."
It added: "The Court states that it is ultimately for the national court to determine whether measures other than that provided for by the Scottish legislation, such as increased taxation on alcoholic drinks, are capable of protecting human life and health as effectively as the current legislation, while being less restrictive of trade in those products within the EU." It added: "The court states that it is ultimately for the national court to determine whether measures other than that provided for by the Scottish legislation, such as increased taxation on alcoholic drinks, are capable of protecting human life and health as effectively as the current legislation, while being less restrictive of trade in those products within the EU."
Reacting to the judgement, Ms Sturgeon tweeted: "ECJ opinion on minimum pricing welcome.Reacting to the judgement, Ms Sturgeon tweeted: "ECJ opinion on minimum pricing welcome.
"We believe it is most effective way of tackling alcohol misuse. National court will now decide.""We believe it is most effective way of tackling alcohol misuse. National court will now decide."
David Frost, SWA chief executive, said: "The SWA always said European Union law issues were central to this case, and so it has proved. This settles EU law issues once and for all.David Frost, SWA chief executive, said: "The SWA always said European Union law issues were central to this case, and so it has proved. This settles EU law issues once and for all.
"The court has confirmed that minimum unit pricing is a restriction on trade, and that it is illegal to choose MUP [minimum unit pricing] where there are less restrictive ways of achieving the same end."The court has confirmed that minimum unit pricing is a restriction on trade, and that it is illegal to choose MUP [minimum unit pricing] where there are less restrictive ways of achieving the same end.
"The Scottish courts will now reflect on the implications of the ruling and all the evidence, before issuing a final judgement. "The Scottish courts will now reflect on the implications of the ruling and all the evidence, before issuing a final judgement."
"This ruling opens the way to moving the debate on and allowing us to address alcohol misuse with practical measures that actually work. Alcohol-related deaths have fallen by a third over the last decade in Scotland, which suggests we are already on the right path. We remain committed to working closely with the Scottish government and everyone else with an interest." Analysis
By BBC Scotland's home affairs correspondent Reevel AldersonBy BBC Scotland's home affairs correspondent Reevel Alderson
Judges at the Court of Session in Edinburgh had asked their European colleagues to rule on whether the Scottish government's policy, enacted in 2012 was compatible with EU law. Today the court in Luxembourg has ruled it isn't. Plus ça change, plus ça même chose. Wednesday's ruling from the European Court of Justice (ECJ) is far from the end of a legal process which began in 2012 when the Scottish Parliament passed legislation allowing a MUP for alcohol to be set.
Instead it says increasing the tax on alcohol tax could be justified as it would combat alcohol misuse and wouldn't restrict the market. The matter will now return to the Court of Session in Edinburgh, which had asked the ECJ to rule on whether MUP contravenes EU law.
However, it says it's ultimately up to the court in Edinburgh to determine whether raising tax levels could be as effective as the introduction of minimum unit pricing. The case will now go back to the Court of Session - although it's ultimate decision is likely to be the subject of an appeal to the UK Supreme Court. The Scottish judges will have to examine all of the evidence to help them decide whether improvements in public health - which the government says is the desired aim of MUP - could be achieved by other means, notably increasing tax rates.
Ministers have argued that MUP would specifically hit high-strength alcoholic drinks which cause significant problems, particularly among young people.
Whatever the Court of Session decides, it is almost inevitable there will be a further appeal to the UK Supreme Court, either by the Scottish government or the Scotch Whisky Association, whose challenge to the policy has halted its implementation.
Alison Douglas, chief executive of Alcohol Focus Scotland, said the ruling showed Scotland would be able to introduce minimum pricing "provided it is more effective than taxation".Alison Douglas, chief executive of Alcohol Focus Scotland, said the ruling showed Scotland would be able to introduce minimum pricing "provided it is more effective than taxation".
Ms Douglas argued minimum pricing was a better measure than alcohol taxes, which are "limited in their ability to raise the price of the cheapest alcohol to a level that will actually reduce harm".Ms Douglas argued minimum pricing was a better measure than alcohol taxes, which are "limited in their ability to raise the price of the cheapest alcohol to a level that will actually reduce harm".
She also criticised the Scotch Whisky Association, saying they had "blocked the democratic will of the Scottish Parliament and sacrificed public health to protect their members' profits". She also criticised the Scotch Whisky Association, saying it had "blocked the democratic will of the Scottish Parliament and sacrificed public health to protect their members' profits".
The chairman of BMA Scotland Dr Peter Bennie, added: "The case for minimum unit pricing has always been based on the fact that it achieves what taxation cannot when it comes to reducing the harm caused by alcohol, so the decision of the European Court setting out the test that must be applied to the policy is a welcome one. The chairman of BMA Scotland, Dr Peter Bennie, added: "The case for minimum unit pricing has always been based on the fact that it achieves what taxation cannot when it comes to reducing the harm caused by alcohol, so the decision of the European Court setting out the test that must be applied to the policy is a welcome one.
"Today's ruling returns the case to the Scottish courts and puts Scotland a step closer to implementing minimum pricing.""Today's ruling returns the case to the Scottish courts and puts Scotland a step closer to implementing minimum pricing."
The ruling of the court in Luxembourg will be referred back to the Court of Session for a final decision. 'Unhealthy relationship'
Whatever the Court of Session decides could then be appealed to the UK Supreme Court in London. Scottish Health Action on Alcohol Problems (Shaap), which represents medical professionals, also welcomed the judgement.
Shaap director Eric Carlin said it "effectively confirms that the Scottish minimum unit pricing policy has to be justified as a regulatory measure to work alongside taxation increases.
"We hope that the Scottish courts will now move quickly to gather evidence to conclude this case and that the Scottish government will then implement this key policy without delay."
Holyrood ministers have previously said minimum pricing was vital to address Scotland's "unhealthy relationship with drink".Holyrood ministers have previously said minimum pricing was vital to address Scotland's "unhealthy relationship with drink".
Under the plans, the cheapest bottle of wine (9.4 units of alcohol) would be £4.69 and a four-pack of 500ml cans of 4% lager would cost at least £4.Under the plans, the cheapest bottle of wine (9.4 units of alcohol) would be £4.69 and a four-pack of 500ml cans of 4% lager would cost at least £4.
It would mean a 70cl bottle of whisky could not be sold for less than £14.It would mean a 70cl bottle of whisky could not be sold for less than £14.
The legal bid by the SWA, backed by other European wine and spirits producers, was initially rejected by judge Lord Doherty at the Court of Session in Edinburgh in 2013.
However, following an appeal hearing, the case was referred last year to the European court for its opinion.