CZECH REPUBLIC: Czechs roll out the barrel over beer tax dispute

The Czech Republic is sending a barrel of beer to Brussels as an "extraordinary ambassador" to show its opposition to a proposed rise in EU beer taxes. The idea for the "beer ambassador" originated from the Pilsen Brewery, home to the well-known "Pilsner Urquell" beer, often considered a national treasure. Around since 1842, the brewery is strongly against the proposed tax and wanted to demonstrate its opposition. "We got the idea of bringing the beer barrel to the Foreign Ministry and to ask for nomination of it as an extraordinary ambassador of the Czech Republic, during the opening of the new bottling line at the Pilsner Brewery," said Pilsner Urquell Corporate Affairs Director Michal Kacena in the Czech capital, Prague, on Thursday (November 22). The beer barrel had been signed by the Czech president, Vaclav Klaus, as well as sports stars, artists and politicians. "This barrel has been approved by president Vaclav Klaus, who signed it in Pilsen last week. We are accepting this barrel. Our ambassadors will symbolically drink a glass of beer and so they will take this beer to the countries all around the world," said Czech foreign minister Alexandr Vondra during a receival ceremony on Thursday. The beer barrels, which will be sent to embassies in more than 50 countries, are to fill the role of symbolic Czech ambassadors, promoting the art of Czech beer brewing. One barrel will be sent to Brussels on November 28, when the committee will discuss raising the taxes. "The original proposal of the (EU) Commission was to leave in place the zero rate for wine, and raise the consumption tax for beer, which would lead to an increase in the price of beer, which obviously we are against," Vondra said. The rise, which needs the unanimous approval of the EU's 25 member states, would add one euro cent (about 1.3 U.S. cents) to the price of a half litre of beer. But Czech Finance Minister Vlastimil Tlusty -- who will also head to Brussels alongside the barrel -- has already said that Prague is prepared to veto the proposed tax rise. Czechs take their beer very seriously. The Czech Republic, with its annual 172 litres of beer per head, is one the world's highest in terms of beer consumption. The beer in restaurants and pubs is still cheaper than lemonade, cola, coffee or mineral water.

ITN Source | November 24, 2006

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