On common, €1.50 out of each €100 that households spend on items and providers within the EU goes to alcoholic drinks, in response to Eurostat. Throughout nations, the share of alcoholic drinks in family spending nonetheless varies broadly.
The value stage index, which compares the worth of the identical basket of alcoholic drinks throughout Europe, is an effective method to take a look at variations in the price of alcohol. The EU common is ready to 100, so if that basket prices €100 on the EU stage, the index exhibits how a lot it will price in every nation.
A worth stage above 100 means a rustic is costlier than the EU common. A rating under 100 means it’s cheaper.
Costliest alcohol in Nordic nations, Turkey, and Eire
As of 2024, the most costly nation for alcohol is Iceland, when ranked alongside 36 European nations (EU members, candidates, and EFTA states). In Iceland, folks pay €285 for drinks that price €100 on common within the EU. That is 185% above the EU common.
Elsewhere within the rankings, the worth of this alcohol basket is €226 in Norway, €210 in Finland and €203 in Turkey. This implies alcoholic drinks price greater than twice as a lot because the EU common. Eire, at €198, can be very near that stage.
The three most costly nations for alcohol costs are all within the Nordic area. The opposite two Nordic nations additionally sit above the EU common: Sweden (€146) and Denmark (€125).
Least expensive alcohol in Italy, Germany and Austria
The most affordable alcohol costs are recorded in Italy, Germany, and Austria. The value of alcoholic drinks costing €100 within the EU is simply €84 in Italy. Meaning alcoholic drink costs are 16% under the EU common.
Alcohol costs are €87 in Germany and €90 in Austria. In Spain, folks pay €91 for a similar basket of drinks. This implies alcohol is usually cheaper within the EU’s ‘Large 4’ economies than the EU common. Solely France is above the common at €102 — and that is simply 2% increased.
Earnings shouldn’t be included
Earnings or earnings aren’t included in worth comparisons, which means the rating doesn’t take wages or different measures of non-public revenue into consideration.
“There is a vital distinction between the worth of alcohol, and the affordability of alcohol,” Professor Colin Angus from the College of Sheffield advised Euronews Enterprise.
A rustic with low alcohol costs however low disposable incomes should still have low affordability, and the other will also be true.
“Tax is a key consider driving [price] variations…Increased alcohol taxes are one of the crucial necessary drivers of upper alcohol costs in some European nations, most notably these in Northern Europe,” added Angus.
He famous that within the Northern European areas similar to Scandinavia, Eire and the UK, increased tax charges are usually a response to excessive ranges of alcohol consumption and alcohol-related hurt.
In 2020, the final yr the UK was a part of the comparability, its index was 139 whereas the EU common was 100.
“Most Mediterranean nations have a lot decrease ranges of alcohol consumption and hurt these days and correspondingly much less want for increased tax charges to disincentivise heavy consuming,” he added.
Dr Jakob Manthey from the College of Hamburg additionally emphasised that increased excise tax charges on sure alcoholic drinks are the important thing driver of variations in alcohol costs.
For instance, in 2020, the 5 nations within the WHO European Area with the best share of alcohol taxes of beer retail worth have been Finland, Turkey, Norway, Estonia, and Iceland. The tax shares ranged between 28% and 39% and the tax shares are bigger for spirits (may be 50% or extra). In low-taxation nations, nonetheless, the tax share is 10% or much less.
Elevating taxes will increase authorities income
“These knowledge present that loads of the retail worth may be decided by excise taxes,” Manthey advised Euronews Enterprise.
He identified that when taxes are raised, this isn’t solely linked to discount in consumption. “Elevating taxes additionally will increase the federal government tax income,” he added.
Colin Angus additionally defined that one other necessary consider setting charges of alcohol taxation seems to be alcohol manufacturing, no less than for wine. Throughout Europe, nations that produce wine in vital volumes nearly solely haven’t any, or very low, tax charges on wine. However, non-wine-producing nations are inclined to tax wine extra extremely.