EU WINE REFORMS CONTINUE TO STALL
EU farm ministers are still failing to see eye to eye. According to the AP, France staunchly defended many of the old practices the EU hopes to overturn, such as turning unwanted wine into industrial alcohol or biofuels, during today’s meeting. Proponents believe the old practices are too expensive or cause overproduction, which has hurt the EU’s competitive ranking in the world market. It’s no secret that the EU wine industry has had trouble keeping up with the times, which is especially apparent in their marketing (or lack thereof) and antiquated labeling.
The EU Commission’s goal is not to cut the 1.3 billion euro ($1.9 billion) wine budget, but instead to spend the money in a different way. EU farm commissioner Mariann Fischer Boel wants to use the money to compensate vintners who want to leave the industry or dig up unprofitable vineyards. The money would also help the EU to promote successful wines in emerging markets such as India and China, says the AP.
However, the farm ministers are far from making a decision, and Portugal, which chairs the meeting, doesn’t want to move forward with a substantially watered-down reform package. Portuguese Farm Minister Jaime Silva supports Fischer Boel’s proposals and believes the European wine sector “needs the courage to take sometimes tough decisions,” according to the AP.
WHERE COMPROMISE COMES INTO PLAY. As we said before, France disagrees strongly with a proposed ban on crisis distillation of excess wine. Crisis distillation reportedly takes up half a billion euros in subsidies that Fischer Boel believes would be better served elsewhere, such as boosting profitable wine companies by allowing them to expand their land. The French disagree and claim vintners would be hard hit if the tradition was taken away. As a result, Fischer Boel yielded to pressure and agreed to let subsidized distillation continue until 2010/2011.
The EU farm ministers most recently decided to end the plan’s controversial proposal to ban sugar in winemaking. So far, the group agreed to allow countries to add sugar to wine as long as they specify the practice on the bottle’s label. Fisher Boel, however, wants to reduce limits on using sugar or concentrated grape must, which is used in sunnier southern EU countries, for enriching wine.
Fisher Boel already compromised by extending the EU’s existing ban on new vine plantings until 2015. Some countries wanted the ban extended even longer (ahem, France), while others don’t want to see it end at all. Currently, the EU does not allow new plantings until 2010. Fischer Boel, on the contrary, wanted to do away with rigid planting rules so profitable companies can boost wine production.
She also softened her proposal to encourage winemakers to dig up unprofitable vines. Fischer Boel reduced the target area to be dug up and the length of the plan from five years to three.
Since little progress was made on the proposals Monday and Tuesday, negotiations are likely to continue tomorrow (Dec 19).
The EU Commission’s goal is not to cut the 1.3 billion euro ($1.9 billion) wine budget, but instead to spend the money in a different way. EU farm commissioner Mariann Fischer Boel wants to use the money to compensate vintners who want to leave the industry or dig up unprofitable vineyards. The money would also help the EU to promote successful wines in emerging markets such as India and China, says the AP.
However, the farm ministers are far from making a decision, and Portugal, which chairs the meeting, doesn’t want to move forward with a substantially watered-down reform package. Portuguese Farm Minister Jaime Silva supports Fischer Boel’s proposals and believes the European wine sector “needs the courage to take sometimes tough decisions,” according to the AP.
WHERE COMPROMISE COMES INTO PLAY. As we said before, France disagrees strongly with a proposed ban on crisis distillation of excess wine. Crisis distillation reportedly takes up half a billion euros in subsidies that Fischer Boel believes would be better served elsewhere, such as boosting profitable wine companies by allowing them to expand their land. The French disagree and claim vintners would be hard hit if the tradition was taken away. As a result, Fischer Boel yielded to pressure and agreed to let subsidized distillation continue until 2010/2011.
The EU farm ministers most recently decided to end the plan’s controversial proposal to ban sugar in winemaking. So far, the group agreed to allow countries to add sugar to wine as long as they specify the practice on the bottle’s label. Fisher Boel, however, wants to reduce limits on using sugar or concentrated grape must, which is used in sunnier southern EU countries, for enriching wine.
Fisher Boel already compromised by extending the EU’s existing ban on new vine plantings until 2015. Some countries wanted the ban extended even longer (ahem, France), while others don’t want to see it end at all. Currently, the EU does not allow new plantings until 2010. Fischer Boel, on the contrary, wanted to do away with rigid planting rules so profitable companies can boost wine production.
She also softened her proposal to encourage winemakers to dig up unprofitable vines. Fischer Boel reduced the target area to be dug up and the length of the plan from five years to three.
Since little progress was made on the proposals Monday and Tuesday, negotiations are likely to continue tomorrow (Dec 19).
posted at 2:12 PM
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