The national governments of the European Union have formally adopted the important reform program for the wine sector, which aims to bring greater efficiency and improved competitiveness to European winemakers and growers in the face of New World wines.
The European Commission will now move to adopt the legislation and bring the reforms fully into force on August 1st of this year.
EU Commissioner for Agriculture, Mariann Fischer Boel, said: “Now we can get on with the final preparations for the entry into force of the new system in August.” She added: “Instead of wasting money getting rid of unwanted surpluses, the reform will allow us to concentrate on taking our competitors and winning back market share. I hope the member states will make good use of the new tools available.”
Under the reform package, premiums are to be paid to growers for grubbing up their vineyards if they choose to leave the sector on a voluntary basis. These payments, which will run for three years, are aimed at the least efficient growers.
The package will also see the end of ‘crisis distillation’ payments, where thousands of litres of unsold wine is converted into industrial ethanol.
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