Brussels, 29/04/2005 (Agence Europe) - Following a proposal from the European Commission, the Wine Management Committee issued a favourable opinion on Thursday at the start of its meeting on the launch of emergency distillation for French and Spanish wine. French and Spanish producers may sign distillation contracts as from 23 may (data of publication of the EU Regulation) until 15 July 2005. It is too early to take a similar situation regarding Greece. Given the current crisis in the European wine-making industry, (mega harvest, lower consumption and competition from outside the EU), several Member States, including France, Greece and Spain, requested the start of emergency distillation of the Commission a few weeks ago, in order to use EU aid to deal with some of the surplus (see EUROPE No. 8902). The Commission was generous with regard to France, authorising emergency distillation for 1.5 million hectolitres of wine of appellation of origin at the exceptional price of 3.35 euros per degree per hectolitre. France was calling for 2 million hectolitres, but was granted a very good price meaning it will not have to provide state aid to supplement the EU price. The volume and price conditions well match the objective of disposing of over stocking of high quality wine, and this process should now begin, explained the French agriculture minister. The measure for Spain covers 4 million hectolitres of table wine at the price of 1.914 euros per hectolitre, the usual level of EU compensation.