Brussels, 25/04/2008 (Agence Europe) - After long months spent refining the text of the regulation and carrying out the necessary procedures to notify the WTO, the EU Council of Ministers will at last, on Tuesday 29 April, formally adopt the reform of the common organisation of the market in wine, which will come into force on 1 August of this year (apart from provisions on labelling, which come into effect in 2009). European agriculture ministers reached agreement on this issue on 19 December 2007 (see EUROPE 9569). After intensive wheeling and dealing, Agriculture Commissioner Mariann Fischer Boel had to give up in her bid to have chaptalisation (adding sugar to wine) banned, and a number of market support instruments (crisis distillation, compulsory distillation, aid for must), which the Commission wanted to get rid of, will continue for the next few years.
Two member states will vote against the text: Denmark, which wanted much wider reform, and Malta, which believes that the reform obtained by the Council will do nothing to enhance the reputation of the Community's quality wines and will not meet consumer expectations in terms of quality and production methods. Estonia will abstain.
Depending on the decisions taken, member states will be allocated a national envelope to fund aid programmes comprising of one or more of the following measures: - single payment scheme support; - promotion on third country markets (the Community contribution to promotional activities does not exceed 50% of permissible costs); - restructuring and conversion of vineyards; - green harvesting (total destruction of unripe grapes so as to reduce yield from the vineyard concerned to zero); - mutual funds (assistance to producers trying to protect themselves against market fluctuation); - harvest insurance (consists of safeguarding producers' incomes when production is affected by natural disasters or adverse weather conditions, disease or parasite infestation); - investment in processing equipment and wine making infrastructure; - distillation of wine making by-products; - potable alcohol distillation (this support can be granted to producers until 31 July 2012) - crisis distillation (this support may be granted until 31 July 2012 to reduce or eliminate surpluses and ensure continuity of supply from one harvest to the next; spending on this aid is capped at 20% of the national envelope in the first year, 15% in the second year, 10% in the third year and 5% in the fifth and final year); - use of concentrated grape must (such support may be granted until 31 July 2012 to wine producers who use concentrated grape must to increase the natural alcohol content of their products).
To better suit reality on the ground, Community funding for the wine sector (around €1.3 billion per year) will now be allocated to member states. The largest national envelopes are those of: Spain (€213.8 million in 2009 rising to €353 million from 2014, with €46 million in addition for rural development from 2011); Italy (€238.2 million in 2009, €336.9 million from 2014, plus almost €40 million for rural development from 2011), France (€171.9 million in 2009, €280.5 from 2014, plus €35.5 million for rural development from 2011) Portugal (€37.8 million in 2009, €65.2 from 2014) and Romania (€42.1 million per year).
The reform will abolish plantation rights with effect from 2015, but it will be possible to retain them at national level until 2018. The Commission will present a report on the application of the reform by 2012 at the latest. A programme grubbing up 175,000 hectares over three years (until the 2010-2011 wine-production year) is planned to allow the least competitive producers to end their activities with dignity. Priority for the payment of premiums will go to wine producers aged over 55 and to those grubbing up all their vines. Member states will be able to end grubbing up if the area concerned exceeds 8% of its vines or 10% of the total area of a given region. Member states will be able to oppose grubbing up in mountain areas or steeply sloping areas, as well as to protect the environment.
The biggest change in terms of labelling is: table wines may henceforth display a year and a grape variety, elements that have hitherto been reserved for local “vins de pays” or wines with a designation of origin. Wines blended from one grape variety from different member states will be banned or will be strictly limited.
Wine-making practices. Chaptalisation will continue to be allowed in the northern European countries where this practice is used. The Council agreed only on a reduction in the authorised sugar level. Levels of sugar addition are, according to geographic areas of the EU: zone A (north) currently 3.5%, then 3% from 2009-2010; zone B (centre), currently 2.5%, 2% from 2009-2010; zone C (south), currently 2%, then 1.5% from 2009-2010. To compensate for the lack of sunshine, in the event of exceptional climatic conditions, member states can ask the Commission the authorisation to increase this percentage by 0.5% in each of the three zones. (L.C.)