EU audit reveals surge in illegal tobacco production across member states

The European Court of Auditors' latest report highlights a marked change in the EU's illegal tobacco market, with organized crime moving production onto EU soil to streamline distribution. Large clandestine plants have been discovered, such as a 24-hour Belgian factory employing 50 workers and capable of producing up to one million cigarettes per hour, and a Spanish operation that yielded three million packs and five tonnes of raw tobacco seized by police.

French authorities also dismantled a cross-border network that supplied thousands of packs to Lille. These illicit factories typically run for two to four months, employ advanced machinery, and tailor brands to specific national markets. While the EU and its members have introduced various anti-smuggling measures, the lack of a fully harmonised legal framework and inconsistent enforcement allow criminal groups to exploit gaps, undermining tax revenues and public-health objectives.