Tuesday, May 13, 2008

Adoption of Wine Reform to Balance Markets, Preserve Rural Areas and Simplify Rules for Producers and Consumers

The Council of Ministers today formally adopted a wide-ranging reform of the Common Market Organization for wine. The changes will bring balance to the wine market, phase out wasteful and expensive market intervention measures and allow the budget to be used for more positive, proactive measures which will boost the competitiveness of European wines. The reform provides for a fast restructuring of the wine sector in that it includes a voluntary, three-year grubbing-up scheme to provide an alternative for uncompetitive producers and to remove surplus and uncompetitive wine from the market. Subsidies for crisis distillation and potable alcohol distillation will be phased out and the money, allocated in national envelopes, can be used for measures like wine promotion on third country markets, innovation, restructuring and modernization of vineyards and cellars.


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