2025-10-21
European wine producers are facing a critical moment as the sector grapples with falling demand, overproduction, and new challenges in global markets. On October 21, industry leaders, policymakers, and experts gathered in Strasbourg at the headquarters of the Grand-Est region for the second session of the European Wine Day. The event was organized by Farm Europe, a think tank led by Yves Madre, who opened the discussions by highlighting the urgency of the situation. He called on all stakeholders to find constructive solutions to ensure the recovery of European viticulture and to avoid a decline in production.
Christophe Hansen, the European Commissioner for Agriculture and Food, addressed the gathering and acknowledged that European wine production is at a turning point after decades of growth. He pointed to several simultaneous challenges: unstable demand both within Europe and abroad, geopolitical tensions affecting exports, generational renewal issues among winegrowers, and the ongoing impact of climate change.
The European Commission has proposed new regulatory tools for the wine sector as part of a legislative package currently under review by the European Parliament. These measures include reducing planting authorizations in regions at risk of overproduction and allowing member states to regulate supply through maximum yield limits and stock management. In cases of market crisis, member states could use flexible tools such as voluntary or mandatory distillation of surplus wine, green harvesting, or even vineyard removal. However, Hansen emphasized that these interventions should be implemented responsibly and financed at the national level, with approval from the Commission through a streamlined process.
France has requested emergency European funds to finance permanent vineyard removal, estimating that €200 to €250 million would be needed for its national sector. However, there is no consensus among EU member states on using European funds for this purpose. Germany supports France’s position, while Italy opposes it and Spain has asked for further justification. Hansen confirmed that if vineyard removal is pursued, it will have to be funded by national budgets rather than through EU crisis reserves. He noted that the next Common Agricultural Policy (CAP), scheduled for 2027, may double the EU’s crisis reserve funds from €450 million to €900 million per year for all of Europe.
The focus from Brussels is shifting toward expanding export markets rather than reducing production capacity. Hansen stressed the importance of helping European wines gain market share globally. The United States remains a key market for European wines but has imposed a 15% tariff since August. Industry representatives like Joël Boueilh, president of Vignerons Coopérateurs de France, have called for renewed negotiations to eliminate reciprocal tariffs and maintain access to this crucial market.
Hansen acknowledged that while a zero-tariff agreement would be ideal for wines and spirits, current negotiations with the U.S. have at least brought stability after years of escalating trade tensions. He also announced plans to travel to Brazil with a European delegation to open new markets in South America, following similar efforts in Japan and India. These markets are seen as promising but require long-term investment and promotional campaigns, which the Commission plans to support through extended initiatives included in the wine package.
The timeline for decisions is tight. The European Parliament’s agriculture committee is expected to vote on the wine package in early November, with a plenary vote later that month. The Council of Ministers could finalize its mandate by year-end.
Spanish MEP Esther Herranz García warned that there will be no quick fixes for the sector’s problems but expressed hope that ongoing negotiations will yield better tools for producers in future editions of European Wine Day. Joël Boueilh noted that while the crisis developed rapidly over two or three years, recovery could also come quickly if appropriate measures are adopted.
Regional leaders like Franck Leroy, president of Grand-Est and head of the Association of European Wine Regions (AREV), stressed the need for strong agricultural policy anchored in local territories and supported by European funds. He argued that only with adequate resources can Europe plant “the seeds of tomorrow’s viticulture.”
Commissioner Hansen concluded by reaffirming his commitment to securing a future for Europe’s wine sector through continued production, preservation of traditional landscapes, development of new markets, and joint efforts by European institutions, national governments, and regional authorities.
Founded in 2007, Vinetur® is a registered trademark of VGSC S.L. with a long history in the wine industry.
VGSC, S.L. with VAT number B70255591 is a spanish company legally registered in the Commercial Register of the city of Santiago de Compostela, with registration number: Bulletin 181, Reference 356049 in Volume 13, Page 107, Section 6, Sheet 45028, Entry 2.
Email: contact@vinetur.com
Headquarters and offices located in Vilagarcia de Arousa, Spain.