THE EUROPEAN UNION CMO WINE REFORM DRAFT: KEY POINTS ARE SUGAR BAN, INCENTIVES FOR GRUBBING UP LOW PRODUCTION AREAS, AND DENOMINATION REFORMS. BUT THE FINAL OK FOR THE PLAN NOT UNTIL MARCH-APRIL 2008

After a year of debate over the initial proposals made in June 2006, the European Commission has now presented the official draft for the reform of the common market organization of the wine sector. The Minister of Agricultural Politics, Paolo De Castro, explained to WineNews that negotiations based on this draft should be concluded under the Slovenian EU presidency in March-April 2008.

According to a press release by the EU, “These are the main goals of the reform: an increase in the competitiveness of European producers, re-conquering the market, balancing supply and demand, simplifying norms, preserving the best European winemaking production traditions, reinforcing the social fabric of rural areas, and safeguarding the environment”.
“A crucial point of the reform” – continued the release – “is making better use of the resources of the available budget (1.3 billion euros), which will remain invariable. On the basis of the proposal, all of the market measures that have shown to be inefficient (like the various incentives for distillation, private storage aid, and export refunds) will be suppressed immediately.
The adding of sugar to increase wine alcohol levels, so-called ‘sugaring’, will also be prohibited, as well as aid for the use of musts for enrichment that had been instituted to compensate for the higher costs of musts in respect to sugar”.
“Crisis distillation will be substituted with two crisis management measures, financed in part by national financial endowments. A more conspicuous part of resources will go towards financing the promotion of European wines, in particular on third country markets. For a transitional period of five years the restrictions on non competitive installations and producers will be maintained and they will have the possibility of abandoning the sector with significant financial aid. After 2013 restrictions on installations will be abolished to allow competitive producers to increase production if they want to.
Labeling rules will be simplified and the European Union will adopt some enological practices admitted to all producing countries that are part of the International Organization of Vine and Wine. The politics of quality will be based on the geographic origin of wines. Member states will receive a national financial endowment and will be able to choose from an array of measures those that are most suitable to local situations. More resources will be transferred to rural development to finance measures like, for example, the installation of young winemakers and environmental protection”.
“We have had a year of intense dialog over how to reestablish the leadership of the European wine sector” – affirmed European Agricultural Commissioner, Mariann Fischer Boel – “I have visited many wine producing regions to hear their preoccupations and to explain my ideas.
Our proposal today, keeps in mind the preoccupations that have emerged, in that it reinforces the promotion of our wines on the export market and limits grubbing up in areas that are environmentally risky. We currently waste too much money, over one third of the budget to eliminate wine excess instead of improving competitiveness and the promotion of our wines. I am convinced that my proposal will give new impulse to the European winemaking sector and will allow us to become once again the merited best and biggest in the world. Therefore, enough rhetoric and let’s do what is best for our wine producers and consumers”.