No C 23/8 Official Journal of the European Communities 25.1. 85 
Third amendment to the proposal for a Council Regulation amending Regulation (EEC) 
No 337/79 on the common organization of the market in wine (') 
COM(84) 775 final 
(Submitted by the Commission to the Council pursuant to the second paragraph of Article 
149 of the EEC Treaty on 21 December 1984) 
(85/C 23/07) 
1. The following recital is added after the second 
recital: 
'Whereas the vineyards in wine-growing zone A 
and the German part of wine-growing zone B are 
solely intended for the production of quality wines 
produced in specified regions; whereas, however, 
some of the wine produced, in particular when 
yield per hectare exceeds a given level, may not be 
recognized as quality wine and may be marketed 
as table wine; whereas, to prevent surplus 
quantities of such wine being offered for 
intervention and thus augmenting intervention 
expenditure to an excessive extent, it is necessary 
to limit the quantities eligible for certain types of 
distillation in these zones;'. whereas, to take fair account of this, the total 
quantity of wine for compulsory distillation should 
be shared between the regions on the basis of the 
disparity between their respective levels of 
production for the year and a reference level 
calculated on the basis of previous years and 
regarded as compatible with normal consumption 
of table wine; whereas the reference level is at 
present 85 °/o of average production in the 
preceding three years; 
Whereas, to ensure that this measure is effective, 
the wine-growing regions should be grouped by 
Member State, each being entrusted with 
supervision of and responsibility for the 
implementation of the measure; 
2. The seventh recital is replaced by the following: 
'Whereas, to enable products used in winemaking 
to be enriched in the foreseeable future with wine 
products instead of sucrose, a very thorough 
knowledge going beyond that afforded by the 
studies already made of certain points is required 
of all the scientific, technical and economic aspects 
of the problem; whereas the Commission should 
therefore make an exhaustive study of the 
question, followed by a report to the Council and 
suitable proposals;'. 
3. The following recitals are added after the last 
recital: 
'Whereas the trend of the table wine market in 
recent years calls for measures to allow more 
direct control over production; whereas, further­
more, surpluses are absorbed primarily through 
compulsory distillation; whereas provision must be 
made for such distillation to be instituted as soon 
as it is clear that the market is in a state of grave 
imbalance and whereas precise criteria must be 
defined for the assessment of such imbalance; 
Whereas, because of the weather and the impact of 
structural measures, the trend of production may 
differ between the regions of the Community; 
0) OJ No C 259, 27. 9. 1984, p. 5. Whereas it is fair to share the obligations between 
producers on the basis of their yield per hectare in 
relation to average yield in the production area, 
and to ensure that producers with very low yields 
are not penalized; whereas differences between 
wine-growing regions warrant the application of 
differing rates to producers in the various regions; 
Whereas wine production should not be 
encouraged in the absence of commercial outlets; 
whereas it therefore appears advisable to lower the 
buying-in price of wine delivered for compulsory 
distillation, as its present level seems sufficiently 
attractive if not to encourage the creation of new 
vineyards at least to enable old vineyards to 
survive in the absence of any sales possibilities;'. 
4. Article 1 is amended as follows: 
(a) The following paragraph 3a is inserted: 
'3a: The following Article 15a is inserted: 
"Article 15a 
With effect from 1988/89, the quantity of 
table wine produced in wine-growing zone A 
and the German part of wine-growing zone B 
25.1.85 Official Journal of the European Communities No C 23/9 
which for a given year is eligible for distillation 
under Articles 11, 12a and 15, shall be 
restricted to 1 million hectolitres. 
In years where, because of the weather or the 
market situation, this restriction is liable to 
cause serious disturbance of the market, the 
Council, acting by a qualified majority on a 
proposal from the Commission, may increase 
the quantity specified in the first paragraph for 
the year in question." ' 
(b) Paragraph 6 is replaced by the following text: 
'6. Article 33a is inserted: 
"Article 33a 
1. The Commission shall make a thorough 
study of the question of how to increase 
natural alcoholic strength. The study shall 
cover the oenological aspects of the permitted 
methods, and the economic aspects of the use 
of rectified concentrated grape must instead of 
sucrose. 
2. Before the end of 1989/90, the 
Commission shall present to the Council a 
report on the conclusions of the study referred 
to in paragraph 1, together with any appro­
priate proposals. 
3. The study referred to in paragraph 1 
shall be paid for by the Community. The 
appropriation shall be fixed under the budget 
procedure. The cost is estimated at 2 million 
ECU."' 
(c) Paragraph 7 is replaced by the following: 
7. Article 41 is replaced by the following: 
"Article 41 
1. Where, in respect of a given wine year, 
the table wine market is in a state of grave 
imbalance, compulsory distillation of table 
wine shall be instituted: 
A state of grave imbalance shall be deemed to 
exist where: 
(a) foreseeable end-of-year stocks exceed a 
level corresponding to four months of 
normal utilization; 
(b) production exceeds the level of normal 
utilization by more than 9 %; 
(c) representative prices for table wines of 
type AI or type RI remain, for a period to 
be determined, below 82 % of the guide 
price. 
2. The Commission shall fix the quantities 
that are to be delivered for compulsory distillation to absorb production surpluses and 
thus restore a normal market situation, in 
particular normal stock levels and prices. 
3. The total quantity to be distilled, 
determined in accordance with paragraph 2, 
shall be shared, before 31 December, between 
the wine-growing regions of the Community. 
The quantity for distillation in each wine­
growing region shall be proportional to the 
difference between: 
— table wine production in the region in the 
year in question; 
— a percentage of the average quantity of 
table wine produced in the region in three 
reference years. 
Until the end of 1989/90: 
— the percentage shall be 85; 
— the reference years shall be 1981/82, 
1982/83 and 1983/84. 
From 1989/90 onwards, the percentage and 
reference years shall be determined by the 
Commission. 
The Commission shall determine: 
— the percentage on the basis of the 
quantities that must be distilled in 
accordance with paragraph 2 in order to 
absorb production surplus for the year in 
question; 
— the reference years on the basis of the 
trend of production, and, in particular, the 
effects of grubbing-up measures. 
4. The quantity for distillation in each 
production area, determined in accordance 
with paragraph 3, shall be shared between 
table wine producers in the region concerned. 
The quantity for distillation for producers 
subject to compulsory distillation shall be equal 
to a percentage of their production of table 
wine. This percentage shall be fixed according 
to the yield per hectare of each producer in 
relation to the average yield obtained in the 
wine-growing area. It may vary between 
regions according to yields obtained in the 
past. It may be nil for producers whose yields 
per hectare are less than 40 % of the average 
yield in the wine-growing region concerned. 
The quantity of table wine to be delivered for 
distillation by each producer shall be equal to 
that determined in accordance with the third 
subparagraph, minus the quantity of table wine 
or wine suitable for yielding table wine 
delivered for distillation as referred to in 
Article 11. 
No C 23/10 Official Journal of the European Communities 25.1.85 
5. The buying-in price for the table wines to 
be delivered for compulsory distillation in 
excess of the quantities delivered for 
distillation as referred to in Article 11 shall be 
as follows for 1985/86, 1986/87 and 1987/88: 
— 50 % of the guide price for each type of 
table wine for the first 10 million 
hectolitres; 
— 40 % of the guide price for quantities 
exceeding the quantity referred to in the 
first indent. 
The buying-in price referred to in the first 
indent shall also apply to wines in a close 
economic relationship with each of the types 
of table wines. The price paid by the distiller 
may not be lower than the buying-in price. 
6. Under the distillation operation referred 
to in this Article, the distiller may: 
— either receive aid in respect of the product 
to be distilled, provided that the product 
obtained from distillation has an alcoholic 
strength of at least 52 % vol; 
— or deliver the product obtained from 
distillation to the intervention agency, 
provided that it has an alcoholic strength 
of at least 92 % vol. 
However: 
— the Member States may stipulate that their 
intervention agencies will not buy in the 
product referred to in the second indent of 
the first subparagraph; 
— if the table wine has been processed into 
wine fortified for distillation before 
delivery for distillation, the aid referred to 
in the first indent of the first subparagraph 
shall be paid to the manufacturer of the 
wine fortified for distillation and the 
product of the distillation may not be 
delivered to the intervention agency. 
A buying-in price of the other products of 
distillation which can be taken over by the 
intervention agency shall be fixed on the basis 
of the buying-in price referred to in the third 
subparagraph but varied to take account, in 
particular, of the costs necessarily entailed in 
processing the relevant products into neutral 
spirits. 7. The Council, acting by a qualified 
majority on a proposal from the Commission, 
shall adopt general rules for the application of 
this Article. These rules shall include: 
— the conditions under which distillation is to 
be carried out; 
— the criteria for determining the amount of 
aid which will enable the products obtained 
to be disposed of; 
— the criteria for fixing the buying-in prices 
of the products of distillation which can be 
taken over by the intervention agencies. 
8. The following shall be adopted in 
accordance with the procedure laid down in 
Article 67: 
— the decision to carry out the distillation 
referred to in paragraph 1; 
— the total quantity to be distilled, as referred 
to in paragraph 2; 
— the determination of production regions, 
the fixing of the percentage and the 
reference years, and the regional allocation 
of the quantities to be distilled, as referred 
to in paragraph 3, grouped by Member 
State; 
— the yield per hectare and the percentages 
referred to in paragraph 4; 
— the prices and the amount of the aids 
referred to in paragraph 6 and other 
detailed rules for the application of this 
Article. 
The same procedure shall be followed, in 
particular so as to alleviate the administrative 
burden arising from the application of this 
Article, for the adoption of measures granting 
total or partial exemption from the obligation 
referred to in paragraph 4 in the case of 
producers who have obtained, or are to 
deliver, in the course of the wine year in 
question, a quantity of wine which is less than 
a quantity to be determined. 
9. Before the end of the 1989/90 wine year, 
the Commission shall submit to the Council a 
report outlining, in particular, the effect of the 
structural measures applicable in the wine 
sector and, where appropriate, proposals to 
repeal or replace the provisions of this Article 
by other measures designed to maintain the 
balance of the wine market." '