EU Approves Sweeping Wine Sector Reform to Boost Competitiveness and Climate Adaptation

The Council of the European Union has approved a new regulation aimed at modernizing the policy framework for the EU wine sector. The decision, announced in Brussels, comes after less than a year of negotiations following the European Commission’s proposal. The updated measures are intended to help the wine industry adapt to changing consumer preferences, climate challenges, and market uncertainties.

Maria Panayiotou, Minister of Agriculture, Rural Development and Environment of Cyprus, stated that the swift adoption of these measures shows the Council’s commitment to addressing farmers’ concerns and supporting the agricultural sector. The regulation provides clear political guidance to the European Commission and ensures that benefits will reach producers within this year.

One of the main goals is to better balance supply and demand in the wine market. Member states will be able to support actions such as grubbing-up excess vines to prevent oversupply and maintain market stability. The previous end date for planting rights has been removed, replaced by a 10-year revision period, giving producers more flexibility to respond to market conditions.

Climate adaptation is another key focus. The regulation allows member states to increase EU support for climate-related investments, including both mitigation and adaptation projects. Funding can now cover up to 80% of eligible costs, which is expected to accelerate the transition toward more sustainable production methods.

Labeling rules across the EU will be simplified and harmonized. This change aims to reduce administrative costs for producers and facilitate cross-border trade. Consumers will benefit from clearer information on wine labels, including digital labels and pictograms that make it easier to understand product contents.

The regulation also encourages innovation in wine production. Rosé wine can now be used as a base for new regional aromatized products, expanding opportunities for product development. Producers will have more room to experiment with emerging styles that reflect evolving consumer tastes.

Support for rural economies is another priority. Wine producers can receive targeted assistance to develop wine tourism initiatives, which are seen as a way to drive economic growth in rural areas and help counter depopulation.

The regulation introduces new definitions for reduced or no-alcohol wines. Products with less than 0.5% alcohol can be labeled as “alcohol-free,” while those below 0.05% may use “0.0%.” Wines with more than 0.5% alcohol but at least 30% lower than standard strength will carry the designation “reduced-alcohol,” replacing previous terms like “alcohol-light.”

For wines destined for export outside the EU, producers will be exempt from listing ingredients and providing a nutrition declaration required for the internal market. This measure is designed to reduce unnecessary administrative burdens on exporters.

To address plant diseases such as flavescence dorée, which threaten vineyards across Europe, the package includes increased support for monitoring, diagnostics, training, and research.

The EU wine sector represents 60% of global wine production and is one of Europe’s largest agri-food export sectors. It plays a significant role in sustaining rural economies and preserving cultural heritage, with 88% of EU vineyards dedicated to geographical indications.

The new regulation will enter into force 20 days after its publication in the Official Journal of the European Union. The Council expects these changes will help make the EU wine sector more competitive, resilient, and responsive to future challenges.