Press Release: CAP Reform: Final stage of EU wine reform to enter into force on 1 st August

The final stage of the European Union wine reform, agreed by agriculture ministers in December 2007, entered into force on 1 August, 2009. The wide-ranging reform, the first stage of which applied from 1 August, 2008, should 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 provided for a fast restructuring of the wine sector. It included a voluntary, three-year grubbing-up scheme to provide an alternative for uncompetitive producers and to remove surplus 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, restructuring and investment in modernisation of vineyards and cellars. The reform will contribute to environmental protection in wine-growing regions, safeguard traditional and well-established quality policies and simplify labelling rules, for the benefit of producers and consumers alike. The restrictive planting rights system will also be abolished at EU level from 1 January 2016 onwards, with the possibility for Member States to keep it until December 2018 if they so wish.