Press Release: CAP reform: Council formally adopts wine reform which will boost competitiveness of European wines

On 29 April, 2008, the Council of Ministers formally adopted a wide-ranging reform of the Common Market Organisation for wine, on which agriculture ministers reached a political agreement in December. The changes were designed to 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 in that it included 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 were phased out and the money, allocated in national envelopes, can be used for measures like wine promotion on third country markets, innovation, restructuring and modernisation of vineyards and cellars. The reform ensured environmental protection in wine-growing regions, safeguarded traditional and well-established quality policies and simplified labelling rules, for the benefit of producers and consumers alike. The very restrictive planting rights system will also be abolished at EU level from 1 January 2016 onwards. The European Commission will now begin the process of adopting the detailed implementing regulations to allow the reform to enter into force on 1 August 2008.