France: winemakers and government at loggerheads, tax exemption clash

If in Italy the situation of government aid to the wine sector, weakened by the crisis due to the long lockdown following the Covid-19 pandemic, becomes clearer and clearer, in France a certain uncertainty continues to reign, experienced with a certain discontent by the wine world beyond the Alps. Yesterday, in fact, as recounted by the French portal “Vitisphere”, the government rejected the request of the transalpine wine organizations for an exemption from taxes for the period March-June, limiting it only to those companies that demonstrate that they have lost more than 80% of their turnover in the four months of acute crisis: the producers asked for total exemption for those who had lost 60% of turnover or more, and exemption of 50% of contributions for those above this threshold. The good news, on the other hand, comes from the distillation front: to the initial budget of EUR 150 million, which would have covered only 60% of the requests received, which concern 3.3 million hectolitres, a ceiling of a further EUR 45 million will be added. The debate is still open, however, the fronts are many, starting with the compensatory measures to be decided to make up for the effects of the US duties, which weigh on many French productions, starting with those of Bordeaux, saving, at least for now, Champagne.