Press Release: CAP reform: Wine reform will boost competitiveness of European wines

The European Commission welcomed the agreement by European Union agriculture ministers to reform the Common Market Organisation 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 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 used for measures like wine promotion on third country markets, innovation, restructuring and modernisation of vineyards and cellars. The reform will ensure 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 reform, which is budget neutral, will enter into force on 1 August 2008.