ARCHIVESHISTORIQUES
DELACOMMISSION
COLLECTION RELIEEDES
DOCUMENTS "COM"
COM(75)164
Vol.1975/0064

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COMMISSION OFTHEEUROPEAN COMMUNITIES
COM(75)164 final .
Bruxelles .11april 1975
\
PROPOS ALFOR A
REGULATION (^EC)OFTHECOUNCIL
laying down general rules governing thedistillation oftable
wines during theperiod from 7June 1975 "to31July 1975
DRAFT
COUNCIL RESOLUTION Y
concerning newguidelines designed to "balance the
• market inwine
(aubaitteil tetheCeunoil bytheCeunoil)'
C0M(75 )164 final

EXPLANATORY MEMORANDUM
Asaresult oftwoexceptionally abundant harvests theCommunity wine
market hasbeen inastate ofgrave crisis forseveral months# Despite the
Couri3il*s Decision concerning distillation of20/21January 1975 *atpresent .
applied to4.6million hectolitres ,prices generally remain below the
activating prices intheFrench andItalian quotation centres *Theproduction
figure emerging from theharvest returns isnearly 2million hectolitres above
thefigure -forecast inDecember 1974 »while theforecasts ofconsumptianin
Prance andItaly appear tohave been overestimated bybetween 2and 3million
hectolitres#
Intheimmediate future ,additional opportunities fordistillation appear
necessary inorder tostabilize themarket# Itisproposed that assoon as
thepresent operation endanewdistillation operation should take place ,i.e.
from 7June to31July 1975 andsubject tothe same conditions concerning
prices andaidaswere adopted bytheCouncil inJanuary last .Experience of
limiting distillation applications "prorata "andaccording toapredetermined
quantity hasrevealed serious drawbaoks ,and itistherefore proposed toreturn
totheprevious system ofadecision concerning afixed period for the
distillation operation .Inthecourse oftheperiod proposed ,andtaking into
account thecapacity ofwine distilleries ,theestimated cost ofthedistil­
lation isunlikely toexceed 59million u.a .Thenecessary appropriations
forthis operation could befound within theframework oftheBudget .
Inaddition ,such adistillation operation should besupplemented by
anumber ofgeneral options concerning production polioy inthewine sector
during thenext fewyears .Tothis endadraft resolution concerning new
guidelines forbalancing themarket inwine hasbeen submitted totheCouncil .

-2-
The resolution should make itpossible ,even before the start ofthenext
marketing year ,toresolve problems relating tothe long»-terme aims ofwine-
growing polioy .

PROPOSAI ,FOR A
REGULATION (EEC)OF THECOÏÏNCIL
laying down general rules governing thedistillation oftable
wines during theperiod from 7June 1975 "to31July 1975
THECOUNCIL OFTHEEUROPEAN COMMUNITIES ,
Having regard totheTreaty establishing theEuropean Economio Community ,
Having regard toCouncil Regulation (EEC)No816/70^of28April 1970laying
down additional provisions forthecommon organization ofthemarket inwine ,
2aslast amended byRegulation (EEC)No678/75 ,andinparticular Article
7(1)thereof ;
Having regard totheproposal from theCommission }
Whereas Article 7ofRegulation (EEC)No816/70provides that measures may
beadopted forthedistillation oftable wines ifthegranting ofaidto
private storage alone isunlikely tobeeffective inrestoring price levels ;
Whereas aids toprivate storage oftable wines areatpresent granted forall
types oftable wines ;whereas theprices formost ofthese wines arebelow 1the
activating price ; '
0JNoL99,5May 1970 ,p.1
20JNoL72,20March 1975 ,p.43

Whereas thepossibility ofconoluding nine-month storage contracts for
table wines oftypes RI,RIIandAIduring theperiod from 16December 1974
to15February 1975 hasnotbrought about anysubstantial restoration ofprice
levels ;
Whereas theabundant harvest ©f1974/75hasyielded supplies considerably
inexcess ofthenormal requirements ofthis wine marketing year ;
Whereas theconditions forthecommencement ofadistillation operation are
fulfilled ?
Whereas itisnecessary tolaydown theconditions under which this operation
should take place ;whereas the price forwines tobedistilled should not
act asanencouragement tothe production ofwines primarily for the purpose
ofdistillation ,but should nevertheless besufficiently attractive forthe
operation tobeeffective }
Whereas ,inorder tolimit thescope ofthemeasure ,itsduration should be
restricted ;whereas means must also befound ofbringing distillation operations
toanend ifprices for table wines referred toabove should rise above the
activating price ;
Whereas theprices forwines tobedistilled will not permit theproducts
thereby obtained tobemarketed onnormal terms ;whereas aid should there­
fore bepaid and itsamount determined ,taking aocount ofnormal costs ,
atalevel which will make itpossible tomarket theproducts ofdistillation ;
Whereas ineach Member State concerned there must beabody responsible for
applying theprovisions inquestion ,
*
HAS ADOPTED THI5 REGULATION :
Article 1
Thedistillation oftable wines Shall bepermitted subject tothe
conditions laid down bythis Regulation .

3
Article2
1•Producers whowishtohaveallorpartoftheirharvestoftable
winedistilledshallconoludedelivery 1contracts,whereappropriate through
theintervention agency,withthedistillersoftheirchoice#
2. Undersuchcontracta :
a)thedistillershallpurchasethequantityoftablewinestatedinthe
contract }
b)thedistillershalldistilsuchwineandshallpayforitatapricewhich
shallnotbelessthanthepricereferredtoinArticle3»
3. Thecontractsshallspecify:
a)thequantity,colourandactualalcoholicstrengthofthetablewines
tobedistilled;
b)thenameandaddressoftheproducer}
c)theplaceatwhichthewineisstored}
d)thenameofthedistillerortheregisteredbusinessorcompanynameef
thedistillery } . .
e)theaddressofthedistillery *
Article3;
•• Theminimumpurchasepricefortablewinestobedistilledis
herebyfixedat1.58unitsofaocountperdegreeandperhectolitre *
2«Theprioereferredtoshallapplyinrespect»funalteredproduct,
exproducer'spremises#
Article4
1•Distillation maynottakeplacebefore7June1975orafter
31July1975.
•••/•••

2.However,itmaybedecidedtobringforwardtheclosingdatefor
distillation ,particularlyiftheaveragepricesforallthetypesoftable
wineonallmarketsshouldfortwoconsecutive weeksremainatalevelabove
theactivatingprice#
Article5
Productsofthedistillation ©ftablewinesmayhaveanalcoholio
strength:
–of86°ormore,
–of85°orless,
withatoleranceof0.4aboveorbelow.
Article6
1•Foreachhectolitreofwinedistilledaidshallbepaidbythe
intervention agency.
2. Theamountoftheaidisherebyfixedatt
–0.92unitsofaccountperdegreeandperhectolitreifthewinewas
processedintoaproductreferredtoinArticle5,firstindent,
–0.78unitsofaccountperdegreeandperhectolitreifthewinewas
processedintoaproductreferredtoinArticle5»secondindent.
3. Theaidmaybepaidonlyuponproductionofaoontractasreferred
toinArticle2anduponproofbeinggiventhatdistillation tookplacewithin
theperiodduringwhichsuchoperationwasauthorizedpursuanttoArticle4»
Artide7
1.MemberStatesshalldesignateanintervention agencytoberespon­
sibleforapplyingtheprovisionsofthisRegulation.
2.Theoompetentintervention agencyshallbetheagencyofthe
Stateonwhoseterritorydistillation takesplace.

Article8
ThisRegulationshallenterintoforceonthethirddayfollowing
thedayofitspublication intheOfficialJournaloftheEuropean
Commrjiities .
ThisRegulationshallbebindinginitsentiretyanddirectly
applicableinallMemberStates*
DoneatBrussels, FortheCouncil
ThePrésident

DRAFT
COUNCILRESOLUTION
concerning newguidelinesdesignedtobalancethe
marketinwine
THECOUNCILOPTHEEUROPEANCOMMUNITIES,
Whereasthepresentserioussurplusonthewinemarketprovestheneedfor
newguidelinesinordertocurbthedevelopment ofwineproductionand
restorethebalanceofthemarketinboththelongandtheshortterm,
WhereasthelastreportoftheCommissionhasshownthatwineproductionalready
exceedsnormalforeseeableutilization ,
Whereasexceptional measuresfordistillation havebeentakeninordert©
permitarapidimprovementinthemarketsituation,
NotestheCommission's intention
–tosuspendEAGGPaidunder.Regulation N©17/64/EECtofutureprojeotsinvel–
••vingtheplantingor(replantingofvines,
–toadoptanegativepositionunderArticle15ofRegulation(EEC)N©816/70
towardsnationalaidshavingthesameobject,
–toproposetotheCouncilmeasurestemporarily suspendingapplication of
theprovisionsofDirectiveN©72/159/eECof17April1972onthemoder­
nizationoffarmsasregardsaidforthereplantingofvines\andtempo–
rarilyprohibitingallnationalaidforthesamepurpose#
•••/•••
.

2
Afurtherdecisiononthemaintenance ofthesethreemeasureswillbetaken
after1January1977inthelightoftheeffectofthefollowingsteps*
–toproposetotheCouncilprovisionsregardingnewplantingandreplanting
ofvinesinordertopreventtheformationofstructuralsurpluseswithin
themeaningofArticle17(5)ofRegulation(EEC)No816/70.
Undertakestotakedecisionsonthe"basisoftheaboveproposalsasquickly
aspossible,andinanycasebefore1August1975»
Agreestoexamineandadoptashavingpriority,andbefore1August1975»"the
amendmentstothebasioregulationsinthewinesectorproposedbythe
Commission,includingmeasuresconcerningpreventivedistillation *