EU takes contraband seriously

Finally, the EU has taken the contraband crisis in Gibraltar seriously. For years Spain has been denying the issue, and in 2013 it cost the nation 718 million euros in lost tax revenues. OLAF, a European organization that fights tax fraud, is asking Spain's tax agency to open an investigation.

The Audiencia Nacional, Spain's national court, will try to figure out if any tobacco companies are involved in the illegal smuggling of cigarettes from Peñon, where they are sold for 40% cheaper than in Spain. The main suspects are Luxembourg's H. Van Landebyck, Greece's Karelia Tobacco and the Cypress company Explosa Ltd. Drastic measure are needed and, if there was any foul play, these companies should lose their licenses.