UPDATE: EU MINISTERS STRUGGLE FOR COMPROMISE

The EU isn’t much closer to making a decision on the proposed wine sector reforms under EU Agriculture Commissioner Mariann Fischer Boel. Her plan includes major changes for the European wine industry, mainly to help drain its surplus wine lake and increase competition with the New World. As you can imagine, her proposals have been met with loads of criticism and resistance. Although some sort of a decision was expected yesterday (Nov. 27), EU government representatives were unable to agree on wine subsidies and the use of adding sugar to wine.

As you’ll recall, many northern EU countries, including Germany, regularly add sugar to their wines as a way to boost alcohol content – a practice that would be banned under the current proposals. Fischer Boel’s plan offers big cash incentives to producers to dig up their vines, particularly lower-quality vineyards. In addition, the reform plan would give EU countries “national envelopes” based on their wine production in the past, which is another sensitive subject under the negotiations. Why the big deal? Mainly because the government will dictate how the money is used, such as marketing, converting vineyards and insuring harvests against natural disasters. Fischer Boel also wants to extend the current ban on new vine plantings from 2010 to 2013.

So as you can see, diplomats are not having an easy time coming to a conclusion. Final negotiations will be held in December, but several insiders say it will be a long time before a final decision is made.

For a more detailed account of the reforms, click here.