Brussels, 25/01/2007 (Agence Europe) - On Wednesday 24 January, the European Parliament agriculture committee called for gradual reform of the Common Market Organisation (CMO) for wine. The report by Katerina Batzeli (PES, Greece) on the subject was adopted by a very large majority (33 votes for, 2 against, with 6 abstentions). The European Parliament will vote on this report on 13 February in Strasbourg.
Two-phase reform: the parliamentary agriculture committee calls for “gradual” and “two-phase” reform. It is calling for an enhanced role for producer groups and funding for promotion campaigns to win new markets (and win back those that have been lost). At the same time, information campaigns will be launched to advise European citizens about “responsible and moderate” consumption of wine. Reform is expected to take into account EU enlargement to Bulgaria and Romania (two countries with significant wine production capacity), as well as the constant development of the Chinese market and the increase in other new producer countries (Australia, New Zealand, US, Canada and South Africa).
Flexible grubbing up: in its press release, the Commission suggests implementation of a (voluntary) grubbing up scheme for 12% of European winegrowing. The EP's agriculture committee considers that the permanent abandonment of wine-growing, “must not be the centrepiece of CMO reform” and only a structural measure (including other measures) funded by the CMO budget (together with aid from national envelopes granted to member states). According to the report, grubbing up operations should, when possible, avoid: vineyards in mountainous, coastal and island regions (which mainly produce wines that have geographical indications); certain coastal vineyards; vineyards that produce wine with commercial outlets; vineyards whose reduction would threaten the whole territory or registered designation of origin status and vineyards where abandonment of production could lead to environmental risks. Permanent abandonment is expected to affect vineyards with low yields or vineyards belonging to farmers who decided to take early retirement. Members of this committee also want to allow member states to implement temporary grubbing up programmes (financial support to wine growers when plantation rights have been frozen over a number of years before taking the decision to replant, or give up their plantation rights, or apply permanent grubbing up measures).
Distillation: the EP's agriculture committee opposes the Commission's strategy to abolish most EU financed market management measures. It agrees to getting rid of aid for public alcohol storage but calls for compulsory distillation to be maintained (which will act as a safety net and allow the gradual reorganisation of the market), and also for voluntary distillation of alcohol to be maintained (for the adaptation of the sector for wine alcohol used for incorporation into certain wine products). The committee also argues for a new crisis management mechanism for use in emergencies.
Winemaking practices: according to the report, enrichment of wine with sugar and concentrated must has to be allowed in every wine growing region where it was traditionally used, and where no structural surpluses exist. The report also supports a ban on the fermentation of imported musts and the mixing thereof with Community musts. The report stresses that the use of oenological practices that are not allowed in the EU should be clearly labelled on imported beverages.
Funding allocation: several formulas are proposed for distributing Community funds between member states: statistical data between production and vineyard surface area in each member state during a given period, for example 2001-05; amounts sued by each of the member states during the current CMO; mixed formula taking into account historical data, scale of vineyards and the quantities produced and marketed by each of the member states.
Liberalisation of rights: as well as grubbing up, the European Commission also proposes the maintaining of a ban on new plantations until 2013. Ms Batzeli's report, on the contrary, calls for a gradual and carefully managed reallocation of new plantations. Member states are expected to present programmes that include the level of plantation targeted, a balance-sheet outlining how rights evolve, vine varieties in each region and implementation timetables. The parliamentary committee considers that priority for plantation rights should go to young farmers, quality wine producers and farms that participate in quality and market improvement programmes. (lc)