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Europe Daily Bulletin No. 9562
Contents Publication in full By article 14 / 36
GENERAL NEWS / (eu) ep/agriculture

Commission partly agrees with EP's changes to wine industry reform plans

Strasbourg, 11/12/2007 (Agence Europe) - On Tuesday 11 December, the European Commission distanced itself somewhat from the position that the European Parliament is preparing to take, over reform of the common organisation of the wine market in the EU (see EUROPE 9549). During a debate ahead of the vote on Thursday 13 December on the EP's opinion on wine reform, EU Agriculture Commissioner Mariann Fischer Boel warned that agreement was within grasp, but she would not agree to proposals being watered down so far as to obtain an end product that had lost all taste and value. The Commission summarised the main challenges facing the Agriculture Council next week, which might be able to reach political agreement on the wine reform.

In a number of areas, the agriculture commissioner said she was prepared to follow the EP's suggestions, to a certain extent at least. Mariann Fischer Boel cited the EP's amendments to reduce the initially proposed five year duration of grubbing-up of vines to three years. She also agreed to reduce the value of appropriations (budget) transferred from the first pillar (direct aid and market support) to the second pillar (rural development) under the common agricultural policy (CAP).

The commissioner pointed out that there were three big issues over which the Commission, the presidency of the Council and most of the member states would have to strike agreement next week in the 'final sprint' to get a reform deal.

National funding. I'm prepared to be a bit flexible here, said the commissioner, agreeing to aid for innovation or the restructuring of wine cellars. But Fischer Boel said she certainly would not accept the idea of including crisis distillation measures in national funding, and she would not re-open the debate on the scale of national funding allocated to the member states.

Chaptalisation. The commissioner said a balance had to be struck between wine producers in Northern Europe, which add sugar to wine to increase the alcohol content, and producers in the South who do not make use of this practice, known as 'chaptalisation'. She said she had listened to the call from the majority for chaptalisation to be allowed to continue, but warned that she was not inclined to accept the status quo and therefore any compromise would imply new conditions

Planting rights. The commissioner mentioned her initial plan to extend until the end of 2013 the system of planting rights so as to give the industry greater freedom to respond to demand from 1 January 2014 onwards. The Commission had listened to criticisms in this connection but believes it is vital for a final date to be given for the end of the planting rights system.

The EP's rapporteur on wine, Giuseppe Castiglione (Forza Italia), said the wine market did indeed need a radical reform which abandoned the logic of quantity for the logic of quality. This is why Castiglione rejected aid for crisis distillation in the current form (the aid has in practice become a structural measure, explained the rapporteur) and is calling for better financial packages for the member states. He stressed the need to promote the drinking of wine both abroad and within the EU. This policy of quality, he said, implied clear and transparent labelling; the protection of denominations of origin; and a voluntary grubbing-up system which would allow wine producers to back out of the market in a dignified manner. He said that it would be necessary to monitor how the system of planting rights operated between now and the end of 2013.

The EPP-ED group, speaking through German MEP Elisabeth Jeggle, warned that it would reject all amendments that did not respect the compromise reached with the commissioner. She called for the local and national system on the ground to be taken into account, pointing out that it was rather pointless to ban certain practices within the EU while allowing the import of enriched wine to which sugar has been added.

Speaking on behalf of the PES group, Greek MEP Katerina Batzeli recommended a restriction on all measures generating surpluses and unbalanced markets. She called for fair measures both for high quality wines (appellation of origin) and for table wines since both had their own place on the market.

Quoting German poet and philosopher Goethe ('life is too short to drink bad wine'), German ALDE MEP Jorgo Chatzimarkakis welcomed the fact that reform of the wine industry was being addressed in a more elegant fashion (following a rather technocratic introduction to the reform) by seeking a better balance between North-South interests. He said a veritable quality offensive was necessary, and recommended defence of appellations of origin. Vincenzo Aita announced that the GUE/NGL group would be voting against the EP proposal.

Spanish EPP-ED MEP Esther Herranz Garcia said that wine was a jewel in the crown of European agriculture but had been punished in recent years. She said the EP's opinion might help the Council make a decision.

Luis Manuel Capoulas Santos (PES, Portugal) said that the outcome of the vote at the EP could show member states the path to follow. He defended the compromise amendments lodged by the PES on the most controversial areas (grubbing-up, chaptalisation, aid for 'grape must', large-scale distillation into drinking quality alcohol to make port, and the management of crises). Marie-Hélène Aubert (Greens/EFA, France) insisted on two points - protecting geographical indications and appellations of origin, which she said were regularly challenged; and providing support for the production of organic wine. Anne Laperrouze (ALDE, France) opposed the European Commission's plan to authorise the listing of grape types on table wine as well as high quality wine, because she said this would mislead consumers and lead to unfair competition between the two categories of wine. (L.G./L.C.)

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