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EU brewers refuse to swallow French beer tax

France set to increase taxes on beer by 160%
France set to increase taxes on beer by 160%

France is planning to impose heavy taxes on beer, and it does not go down well with brewers - even in other nations.

President Francois Hollande is pushing through legislation to increase taxes on beer by 160%,

He wants help to fund struggling social security programmes as France tries to lower a budget deficit hit hard by the economic crisis.

The tax would affect local brewers and the 30% of imported beer the French drink.

The Brewers of Europe trade group called the measure a ''kick in the teeth" for brewers. They have seen production plummet by 6% and consumption by 8% in the EU since the economic crisis began in 2008.

Belgium and Germany could be the worst affected once the new legislation kicks in.