The European Commission said it is stepping up action against Belgium and France for fixing minimum retail prices of cigarettes.

The commission is sending both countries a reasoned opinion, which is the second stage in the EU's infringement procedure.
It said minimum prices contravene EU law, distort competition and benefit only manufacturers. To achieve the objective of reducing tobacco consumption, member states should instead raise the excise duty on cheap cigarettes, it said. Both countries must comply with the commission's request within two months if they are to avoid being taken to the European Court of Justice.