EU Fights Back Against Wine Sector Woes

The European Commission has unveiled a new "wine package" proposal aimed at addressing the significant challenges faced by the wine sector. These challenges span social, economic, geopolitical, and environmental issues. The proposal seeks to enhance the competitiveness of the wine industry. Marzia Varvaglione, President of the Comité Européen des Entreprises Vins (CEEV), expressed gratitude for the Commission's swift action. She noted that the Commission translated policy recommendations from the EU High-Level Group into a legal proposal within three months. Varvaglione emphasized that while EU regulation cannot solve all problems, it can provide a framework to help the wine sector navigate these tough times.

The CEEV highlighted several key proposals included in the draft regulation. These include tools to manage production potential, such as extending the validity of replanting authorizations and removing penalties for non-use. Member States may also limit new planting authorizations in crisis areas to prevent yield increases. The proposal also promotes green harvesting and sets stricter rules for grubbing-up. Climate change measures are reinforced, with investment support increased from 50% to 80%. The duration of support for promotion and communication in third countries is extended. New rules for dealcoholized and partially dealcoholized wines, including sparkling versions, are established. The framework for aromatized wine products is adapted to align with innovation and consumer demand. The Commission is empowered to develop a harmonized QR-code identification system for e-labels, possibly using pictograms or symbols.

Ignacio Sánchez Recarte, Secretary-General of CEEV, praised the proposal as a solid legal package. He expressed readiness to collaborate with the Commission, European Parliament, and Council to refine the proposal. He stressed the need for expedited adoption. However, Recarte warned that the wine package's effectiveness could be undermined by a potential trade conflict between the EU and the US. Although 200% tariffs on EU wines have not been implemented, the US wine market is effectively closed to EU wines. Importers have stopped shipments due to tariff fears, costing EU wine companies €100 million weekly. Recarte called for an urgent resolution, stating that wine should not be caught in unrelated trade disputes.