Sweden Keeps Its License
EU Upholds State Monopoly on Alcohol Sales

By Barry James
International Herald Tribune Oct 24, 1997

BRUSSELSThe European Court of Justice on Thursday upheld Sweden's state
monopoly on the sale of alcohol accepting the argument that it was
justified on publichealth grounds but warning that aspects of it were an
impediment to free trade within the European Union.

The ruling also has implications in Finland, an EU member, and Norway. All
three Nordic countries operate similar monopolies. They use part of their
income for antialcohol publicity and treatment.

"The Swedish retail monopoly pursues a public health aim," the court ruled.
"Its criteria and methods of selection are neither discriminatory nor
liable to put imported products at a disadvantage. "

It said that retail sales through monopoly shops and other stateapproved
outlets were legal. But it said Sweden breached European law and impeded
trade by insisting that only licensed producers or wholesalers could import
alcoholic beverages, putting traders in other countries at a disadvantage.
The court said Sweden could pursue its publichealth aims without this
restriction.

A Finnish minister responsible for health and social affairs, Terttu
HuttuJuntunen, told Reuters the decision was "proof that the European Union
understands that alcohol policy is part of our Nordic welfare state
ideology. The decision enables us to conduct a national alcohol policy
based on our own national needs."

The court was asked by a tribunal in the southern Swedish town of
Landskrona to rule whether the alcohol monopoly contravened the EU's
founding Treaty of Rome. Article 30 of the treaty bans "quantitative
restrictions on importation," and article 37 obliges member states to
ensure that state monopolies do not result in commercial discrimination.

A grocery store owner in Landskrona, Harry Franzen, challenged the law by
selling wine in his shop in 1994 for a brief period until the police
stopped him. That was before Sweden joined the EU in 1995.

Mr. Franzen has become a hero for many Swedes. He said that the court
ruling was a "partial victory" and that he would keep fighting the Swedish
government. Despite his popularity, a poll published in Stockholm this week
indicated that more than half the population wanted to keep the centuryold
restriction on liquor, while relaxing the rule on wine.