Brussels, 17/10/2005 (Agence Europe) - On 12 October, the European Commission adopted two decisions on restructuring and conversion of vineyards. The first decision makes an indicative financial distribution to wine producing Member States of € 450 million for actions in the 2005/2006 marketing year. The second sets the definitive allocations for the 2004/2005 marketing year. The aid is divided up as follows: Spain, EUR 149.3 mil (for 19,888 hectares), France, 108.2 mil (16,691 ha), Italy 103.7 mil (14,633 ha), Portugal 45.5 mil (7,153 ha), Germany 12.7 mil (1,975 ha), Hungary, 9 mil (1132 ha), Austria 7.2 mil (1275 ha), Greece, 7 mil (988 ha), Slovenia, 2.9 mil (172 ha), Cyprus, 2.3 mil (193 ha), Slovakia, 0.79 mil (221 ha), Czech Republic, 0.77 mil (84 ha), Malta, 0.15 mil (15 ha) and Luxembourg, 0.083 mil (10 ha).
The European Commission's regulation on the 2004/2005 marketing year allocates a total of EUR 450 mil for renovating just over 59,000 hectares of vineyards in the same 14 Member States, including 151.5 mil for Spain (21,131 ha), 106.3 mil for France (11,380 ha), 99.7 for Italy (13,874 ha), 45 for Portugal (5,747 ha), and 12.5 for Germany (1998 ha).
The aim of the system is to adapt production to match market demand. It covers the following measures: Varietal conversion, relocation of vineyards and improvements to vineyard management techniques. The system does not cover the normal renewal of vineyards which have come to the end of their natural life. €2,138 million of subsidies were allocated to the wine-making Member States in the five previous marketing years.