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    Free movement of goods my arse! News from Austria .......

    Friends of mine here in Austria have recently made a couple of trips back to the UK by road, distributing stuff between their two homes. Both times they've been stopped at the border and inspected by the German Finance Police (like the Inland Revenue but in uniform, with pistols). Not looking for Jihadists, Sudanese migrants, Serbian surplus weapons but for cigarettes and tobacco.

    Germany has announced that she will keep her borders closed. So will Denmark, France and Austria, not to mention Hungary and Slovenia. The pretence is terrorism; the reality, I think, almost certainly includes smuggled tobacco products.

    Austria is a nation of heavy smokers, and the legal price of ciggies at about €4.50 a pack keeps it that way; bars are mostly smoking-friendly, with only a ban coming next year for food and fags in the same room. It does my heart good to walk into a thick comforting fug of eye-stinging tobacco smoke down the hill at my local gasthaus - keeping alive the memory of pre-2006 Britain. It's not that the Austrian government, under strong pressure from the EU, doesn't want to increase tax on fags; it can't. The proximity of the eastern EU border, with fags coming in from Ukraine at €1.50 a pack, means any tax increase on legal fags will actually lower revenue. Poland's the same, as is Hungary. Only the UK and Ireland, far from eastern Europe, can increase tobacco duty indefinitely.

    So as the Shengen area border posts are reappearing and traffic queues that were recently just a distant memory are now returning on national borders, the nations of Europe are striving to stem the haemorrhage of tax eastwards and halt the tsunami of Chinese and eastern European fags flooding in.

    The prospect makes me chuckle that it's Europe's smokers who may be the final straw that broke Shengen. Now that would be sweet revenge ...

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