Reform of the EU wine sector - Agriculture and Rural Development

Reform of the wine sector: Communication from the Commission

22/06/2006 - The European Commission today called for a root-and-branch reform of the Common Market Organisation for wine. The plan aims to increase the competitiveness of EU wine producers, strengthen the reputation of EU wines, win back market share, balance supply and demand and simplify the rules, while preserving the best traditions of EU wine production and reinforcing the social and environmental fabric of rural areas. The Commission considers four options for reform, and comes out clearly in favour of a radical reform model specific to the wine sector.

Press release

The first wine Common Market Organisation (CMO) was introduced in 1970 and has been modified several times since then. However existing instruments of the wine CMO have become unsatisfactory to prepare the EU's vine growers and wine producers and traders for the mounting competition in the new global market situation:

The current market situation between supply and demand in the Community is unbalanced.

The rules governing the definitions, processing and marketing of wine need to be refined, updated and made more flexible to take into account changing qualitative consumer demand.

Hence the adoption of a wine reform proposal has been put on the Commission working programme for 2006. The main steps are:

The Commission held a wine seminar with a wide range of European stakeholders on 16 February 2006.

The Commission adopted on 22 June 2006 a Communication to the Council and the Parliament and an Impact Assessment report covering several options and their likely effects.

The legislative proposal is due for adoption around the middle of 2007.

The key objectives of this reform will be:

To increase the competitiveness of the EU's wine producers, strengthen the reputation of EU quality wine as the best in the world, recover old markets and win new ones in the EU and worldwide;
To create a wine regime that operates through clear, simple rules – effective rules that ensure balance between supply and demand;
To create a wine regime that preserves the best traditions of EU wine production and reinforces the social and environmental fabric of many rural areas.