19. 6. 86 Official Journal of the European Communities No C 153/5 
II 
(Preparatory Acts) 
COMMISSION 
Proposal for a Council Regulation on a common measure to improve vine-growing structures in 
Portugal 
COM(86) 281 final 
(Submitted by the Commission to the Council on 3 June 1986) 
(86/C 153/06) 
THE COUNCIL OF THE EUROPEAN COMMUNITIES, 
Having regard to the Treaty establishing the European 
Economic Community, and in particular Article 43 
thereof, 
Having regard to the proposal from the Commission, 
Having regard to the opinion of the European 
Parliament, 
Having regard to the opinion of the Economic and 
Social Committee, 
Whereas the measures referred to in Article 263 (2) (b) 
and (c) of the Act of Accession of Spain and Portugal 
provide in particular for: 
— the application in Portugal, from the date of 
accession, of Community rules in the socio-structural 
field, including those relating to producers' organ­
izations, 
— the extension, to the advantage of Portugal, within 
the framework of the rules referred to under (b), of 
the most favourable specific provisions existing at 
that date, in horizontal Community rules, to the 
least-favoured areas of the Community as constituted 
on 31 December 1985; 
Whereas, to achieve the objectives of the common agri­
cultural policy mentioned in Article 39 (1) (a) and (b) of 
the Treaty, special provisions adapted to the situation in 
the least-favoured agricultural areas must be taken at 
Community level; 
Whereas the vine-growing structures in Portugal must be 
improved in view of the major imbalances of a structural 
nature encountered, particularly as regards the general 
state of vineyards, the location and the dispersion of 
areas and the quality of the vine products; 
Whereas the imbalances on the wine market may be 
gradually eliminated only by a coherent series of 
measures; whereas, consequently, provision should be made for Portugal to qualify both for measures relating 
to restructuring and for measures to encourage the 
abandonment of certain areas under vines; 
Whereas the measures for restructuring vineyards must 
not lead to an increase in areas under vines in Portugal; 
whereas action to restructure vineyards should be 
confined to areas particularly suitable for vine-growing; 
Whereas Council Regulation (EEC) No 458/80 of 18 
February 1980 on collective projects for the restructuring 
of vineyards ('), as last amended by Regulation (EEC) 
No 3827/85 (2), cannot apply to Portugal on account of 
the absence of a classification of vine-growing areas in 
that Member State; whereas, in addition, it is not suited 
to Portuguese vine-growing structures, on account in 
particular of the limited size and the dispersion of vine-
growing areas in Portugal; 
Whereas provision should accordingly be made for a 
specific measure for Portugal and whereas the restruc­
turing measures should be extended to include the 
necessary support operations, such as land improvement 
and consolidation, and areas under vines intended for 
the production of tables grapes; 
Whereas the restructuring measures can only be 
implemented successfully if aid is granted to compensate 
for the cost of restructuring work (aid for restructuring) 
and for the income losses entailed by the restructuring 
operations (additional premium); 
Whereas, in order to ensure maximum effectiveness for 
the vineyard restructuring operations, priority should be 
given to those covering large areas carried out on a 
collective basis; whereas, to this end, additional aid 
(') OJ No L 57, 29. 2. 1980, p. 27. 
O OJ No L 372, 31. 12. 1985, p. 1. 
No C 153/6 Official Journal of the European Communities 19.6. 86 
should be granted where restructuring operations are 
carried out by a group or on a collective basis; 
Whereas, in order to obtain the economic and qualitative 
results expected of the restructuring measures, vine-
growers involved in restructuring operations should be 
afforded the requisite technical assistance, including 
assistance with the preparation of restructuring projects; 
Whereas the abandonment of certain areas under vines 
should be encouraged on account of the growing 
imbalance on the market for wine and the need to 
reduce the Community vine-growing potential; whereas, 
to this end, premiums for the permanent abandonment of 
certain areas under vines, varying with productivity, 
should be granted; 
Whereas Council Regulation (EEC) No 777/85 of 26 
March 1985 on the granting, for the 1985/86 to 1989/90 
wine years, of permanent abandonment premiums in 
respect of certain areas under vines ('), as last amended 
by Regulation (EEC) No 3775/85 (2), provides for 
permanent abandonment premiums which are not 
adapted to the real price situation in Portugal; 
Whereas funds available in Portugal are fairly limited; 
whereas provision should be made for a cofinancing rate 
at Community level of 50 % of expenditure incurred on 
implementation of restructuring measures and that rate 
should be raised to 70 °/o for expenditure incurred on the 
implementation of measures for the permanent 
abandonment of vine-growing where the results will 
reduce EAGGF Guarantee Section expenditure; 
Whereas the achievement of such objectives should be 
encouraged via action combining the indispensable 
measures and involving a programme extending over 
several years; 
Whereas it is the responsibility of the Commission, 
having obtained the opinion of the Standing Committee 
on Agricultural Structure, to decide on the approval of a 
programme submitted by the Portuguese Government; 
Whereas it follows from the foregoing that the 
abovementioned measures constitute a common measure 
within the meaning of Article 6 of Council Regulation 
(EEC) No 729/70 of 21 April 1970 on the financing of 
the common agricultural policy (3), as last amended by 
Regulation (EEC) No 3769/85 (4), 
0) OJ No L 88, 28. 3. 1985, p. 8. 
(2) OJ No L 362, 31. 12. 1985, p. 39. 
(3) OJ No L 94, 28. 4. 1970, p. 13. 
(4) OJ No L 362, 31. 12. 1985, p. 17. HAS ADOPTED THIS REGULATION: 
Article 1 
With a view to contributing towards improving the 
situation in the wine sector in Portugal by improving the 
basic vine-growing structures on the one hand and by 
encouraging the permanent abandonment of certain 
areas under vines on the other, a common measure 
within the meaning of Article 6 (1) of Regulation (EEC) 
No 729/70 is hereby instituted. 
TITLE I 
Restructuring of vineyards 
Article 2 
1. In accordance with Articles 3 and 5, the 
Community shall grant aid for the common measure by 
providing finance through the Guidance Section of the 
European Agricultural Guidance and Guarantee Fund, 
hereinafter referred to as 'the Fund', for the following: 
— measures to restructure vineyards intended for the 
production of wine or table grapes, 
— various support measures connected with restruc­
turing. 
2. For the purposes of this Regulation, the restruc­
turing operations shall comprise: 
— the grubbing of vines on plots with a minimum area 
equivalent to that referred to in the second indent, 
— the replanting of vines intended for the production of 
quality wines produced in specified regions (quality 
wines psr) or tables wines and table grapes, of 
improved quality, by means of an appropriate 
selection of recommended vine varieties, on land 
whether or not located on the same holding with a 
minimum area of 0,25 hectares in the case of 
individual restructuring, 1 hectare in the case of 
group restructuring involving at least three vine-
growers and 10 hectares in the case of collective 
restructuring involving at least 15 vine-growers, 
whether or not including land consolidation, 
— the double grafting of vines under the conditions and 
with the vine varieties referred to in the second 
indent. 
However, in the autonomous regions of Madeira and the 
Azores, the Commission may, at the request of the 
Member State, authorize the minimum area required to 
be reduced. 
3. For the purposes of this Regulation, support 
measures shall consist of: 
— the production of replanting material in line with the 
requirements of the common measure, 
— land-improvement work such as measures to prevent 
the erosion of areas under vines, the laying of 
intercepting ditches, drainage, levelling and stone 
clearance, 
19.6.86 Official Journal of the European Communities No C 153/7 
— improvement of access roads or tracks to vineyards, 
— land consolidation, 
— such technical assistance as is essential for achieving 
the aims of the common measure. 
4. The following shall not qualify for aid for 
restructuring: 
— areas on deep soil containing little coarse matter, 
areas which are clearly unsuitable for vine-growing 
owing in particular to adverse natural soil conditions, 
unsuitable slopes, excessive humidity and adverse 
exposure, 
— areas suitable for providing sufficient income with 
other crops which have normal outlets on the 
markets. 
5. For the duration of the common measure, the 
measures for restructuring Portuguese vineyards shall not 
qualify for the Community aid provided for in 
Regulation (EEC) No 458/80. 
Vine-growers who have received the permanent 
abandonment premium provided for in Title II may sub­
sequently qualify for the aid for restructuring provided 
for in this Title only where the areas in respect of which 
the abovementioned abandonment premium was paid are 
not adjacent to the other areas of the holding. 
Article 3 
1. The financial contribution by the Community shall 
be granted only in the context of a programme involving 
all the operations referred to in Article 2 (1). That 
programme shall be submitted to the Commission by 
Portugal. 
2. At the request of the Commission, Portugal shall 
provide additional information for assessing the data 
provided for in Article 4. 
3. The programme and any amendments to it shall be 
examined and approved after the Fund Committee has 
been consulted on the financial aspects in accordance 
with the procedure laid down in Article 12. At the time 
when the programme is approved, the Commission shall 
determine in agreement with the Member State, the 
information which must appear in the annual report on 
the application of the Regulation to be submitted to the 
Commission each year. Article 4 
The programme referred to in Article 3 shall contain in 
particular information on the following: 
(a) restructuring: 
— a definition of the quality of soil suitable for 
restructuring, 
— the estimated number of hectares of vineyard to 
have been restructured on completion of the 
programme and a timetable for the works, 
— the location of the main areas of restructuring, 
— the suitability of those areas for providing 
products of sound quality, 
— details of the vine varieties, their origin and 
regional distribution, 
— in the case of collective restructuring, the nature 
of the constraints imposed in order to ensure the 
effectiveness of the operations, 
— the provisions contemplated in order to improve 
land distribution, i.e. land consolidation or other 
measures. In the latter case, arrangements to 
arrive at a parcelling ratio of at least 2 to 1 at 
commune level must be provided for, to ensure 
that the establishment of new vineyards takes the 
form solely of replanting, i.e. planting after 
grubbing operations carried out with a view to 
restructuring; 
(b) support measures: 
— the provisions contemplated with a view to the 
production of selected replanting and grafting 
material, 
— as regards land improvement, a description of the 
works planned for each major restructuring area, 
— a summary of total expenditure broken down 
into public, private and Community expenditure 
and a timetable, 
— the arrangements for providing the technical 
supervision which is essential for the success of 
the restructuring operations and for ensuring that 
new staff will be recruited only for carrying out 
the common measure. 
Article 5 
Investments qualifying for a financial contribution from 
the Community under Council Regulation (EEC) No 
797/85 (l) or other common measures within the 
meaning of Article 6 (1) of Regulation (EEC) No 
729/70 may not qualify for a financial contribution from 
the Fund under this Title. 
4. The duration of the programme shall be not less 
than that of the common measure. (') OJNoL93, 30.3. 1985, p. 1. 
No C 153/8 Official Journal of the European Communities 19. 6. 86 
TITLE II 
Permanent abandonment of vine-growing 
Article 6 
1. In accordance with Articles 7 and 8, vine-growers 
cultivating areas under vines as referred to in Article 2 
(4) may, on application, qualify for a premium for the 
permanent abandonment of vine-growing. 
2. The grant of the permanent abandonment premium 
shall entail for the vine-grower: 
(a) forfeiture of the right to replant the area for which 
the premium is paid; 
(b) a reduction of the replanting right originating from 
any grubbing carried out on the residual vine-
growing area of the holding after the grant of the 
premium and exercised before the date of expiry of 
this Regulation. The reduction shall be equal to 
20 %; 
(c) compensation for the reduction provided for in (b) 
equal to 500 ECU per hectare of vineyard grubbed. 
Such compensation shall be paid, on application by 
the holder of the replanting right, by Portugal when 
the right in question is exercised. 
3. Paragraph 2 (b) and (c) may be amended by the 
Council acting by a qualified majority on a proposal 
from the Commission. 
4. The permanent abandonment premium shall be 
limited to an overall area of 15 000 hectares. It shall be 
granted in respect of a minimum area of 0,10 hectares. 
5. For the duration of the common measures provided 
for in this Regulation, vine-growers may not qualify for 
the permanent abandonment premium provided for in 
Regulation (CEE) No 777/85. 
Article 7 
1. Applications for permanent abandonment premiums 
must be submitted to the departments designated by 
Portugal not later than 31 December for the current 
wine year. 
Applications relating to areas under wine grapes shall be 
accompanied by an official declaration stating the yield 
per hectare determined on the basis of the declared 
average yield of the applicants' holding and the 
production capacity of the vineyard to be grubbed 
determined on the spot before grubbing by the 
competent Portuguese agency. 2. The grant of the premium shall be subject to a 
written declaration in which the applicant undertakes: 
— by 31 May of the year following that in which the 
application is submitted, to grub, or cause to be 
grubbed, the vines on the areas for which the 
premium has been applied for, 
— not to plant, on the holding to which the area for 
which the premium is received belongs, new vines 
within the meaning of Annex IVa (e) of Council 
Regulation (EEC) No 337/79 for 16 wine years 
following that in which the vines are grubbed, 
— to declare each year during that period, where 
appropriate at the same time as his harvest, the area 
under vines which is in production and the area 
which is not in production. 
3. The grant of the premium shall also be subject to 
the applicant: 
— being entitled, when the application is submitted, to 
continue to cultivate the land in question during the 
period referred to in the second indent of para­
graph 2, 
— producing, if he does not fulfil the condition laid 
down in the first indent, a written undertaking by the 
owner of the land that he will guarantee that the 
obligations laid down in paragraphe 2 are complied 
with or that he will comply with them personally. 
If, after the grant of the premium, and in the course of 
the period referred to in the second indent of paragraph 
2, all or part of the holding should pass to another party, 
the recipient of the premium or his assignees shall remain 
responsible for the performance by the successor of the 
undertaking entered into by the recipient, unless: 
— the successor enters into such an undertaking on his 
own account for the remainder of the period, 
or 
— the owner has given the undertaking provided for in 
the second indent of the first subparagraph. 
4. Portugal may decide to bring forward the dates 
referred to in the first subparagraph of paragraph 1 and 
the first indent of paragraph 2. 
Article 8 
1. For the grant of the permanent abandonment 
premium, areas under mixed crops shall be expressed as 
areas under specialized crops using the customary 
conversion factor for the production area concerned. 
2. The permanent abandonment premium shall be 
paid by the end of the calendar year following that in 
which the application for a premium was submitted, on 
condition that the applicant has provided evidence that 
grubbing has in fact taken place. 
19.6.86 Official Journal of the European Communities No C 153/9 
TITLE III 
Financial and general provisions 
Article 9 
1. The following expenditure incurred by Portugal 
shall be eligible for assistance from the Guidance Section 
of the Fund: 
(a) in the case of restructuring operations within the 
meaning of Article 2 (2) and in respect of a 
maximum overall area of 30 000 hectares, aid 
granted in the form of: 
— an aid per hectare intended to contribute towards 
the actual costs of restructuring work; the aid, 
hereinafter referred to as 'restructuring aid', shall 
be fixed at a maximum of: 
— 2 500 ECU per hectare where restructuring 
involves grubbing of vines, soil preparation 
and replanting, 
— 500 ECU per hectare where restructuring 
involves double grafting. 
Restructuring aid may be increased by a maximum 
of: 
— 200 ECU per hectare in the case of grouped 
restructuring, 
— 400 ECU per hectare in the case of collective 
restructuring, 
— 600 ECU per hectare in the case of collective 
restructuring carried out in the context of the 
land consolidation at commune level, 
— a degressive additional premium paid over several 
years to persons whose main occupation is 
farming to offset income losses due to restruc­
turing; that premium, hereinafter referred to as 
the 'additional premium', shall be granted for a 
maximum period of four years, to total between 
800 and 1 500 ECU per hectare of replanted 
vineyard or between 200 and 500 ECU per 
hectare of double-grafted vineyard, depending on 
the age and the yield of the vineyard which has 
been grubbed or double grafted respectively; the 
yields to be taken into consideration for the 
granting of the minimum and maximum amounts 
of the additional premium shall be 15 and 80 
hectolitres of wine per hectare respectively. The 
procedure for determining the variable amount of 
the additional premium shall be laid down in the 
programme referred to in Article 3 of this 
Regulation; 
(b) in the case of support measures within the meaning 
of Article 2 (3), investment aid of up to 1 500 ECU 
per hectare of restructured vineyard, where the land 
improvement operations entail drainage and anti-
erosion measures for work connected with land 
consolidation, such as levelling, the building of 
embankments, ditches and access paths and roads 
and other works made necessary as a result of land 
consolidation. Aid for the technical assistance necessary for 
carrying out the restructuring of the vineyards 
covered by the common measure, including aid for 
the preparation of restructuring projects, shall not 
exceed 5 % of the estimated total cost of restruc­
turing in the programme approved in accordance 
with the procedure laid down in Article 12; 
(c) the permanent abandonment premium granted in 
accordance with Article 6 shall be as follows: 
— for areas of not less than 10 ares but not more 
than 25 ares planted with wine grape varieties 
and constituting the entire area under vines on 
the holding concerned: 2 500 ECU, 
— for areas of more than 25 ares planted with wine 
grape varieties: 
— 1 000 ECU if the average yield per hectare of 
the said areas is not more than 20 hectolitres, 
— 1 600 ECU if the average yield per hectare of 
the said areas exceeds 20 hectolitres but not 
25 hectolitres, 
— 2 200 ECU if the average yield per hectare of 
the said areas exceeds 25 hectolitres but not 
30 hectolitres, 
— 2 800 ECU if the average yield per hectare of 
the said areas exceeds 30 hectolitres but not 
50 hectolitres, 
— 3 500 ECU if the average yield per hectare of 
the said areas exceeds 50 hectolitres but not 
90 hectolitres, 
— 5 000 ECU if the yield per hectare of the said 
areas exceeds 90 hectolitres but not 130 
hectolitres, 
— 6 200 ECU if the yield per hectare of the said 
areas exceeds 130 hectolitres but not 160 
hectolitres, 
— 6 500 ECU if the yield per hectare of the said 
areas exceeds 160 hectolitres, 
— for areas planted with varieties classified, for the 
administrative unit concerned, as table grapes or 
as both table and wine grapes: 
— 5 500 ECU in the case of vines trained by the 
pergola method, 
— 3 500 ECU in the case of vines trained by a 
method other than the pergola method. 
2. The amounts specified in paragraph 1 (c) shall be 
increased by 300 ECU per hectare if the areas concerned 
constitute the entire area under vines cultivated by the 
applicant. 
3. The compensation provided for in Article 6 (2) (c) 
shall constitute intervention intended to stabilized the 
agricultural markets within the meaning of Article 1 (2) 
of Regulation (EEC) No 729/70. 
4. The Fund shall repay to the Portuguese 
Government 50 % of eligible expenditure within the 
limits laid down in paragraph 1 for restructuring. 
No C 153/10 Official Journal of the European Communities 19.6.86 
As regards the permanent abandonment premiums, the 
Fund shall repay 70 % of expenditure within the limits 
laid down in Article 6 (4). 
As regards the compensation provided for in Article 6 (2) 
(c), the European Agricultural Guidance and Guarantee 
Fund, Guarantee Section, shall finance 90 % of 
expenditure within the limits laid down in Article 6 (4). 
Article 10 
1. The period for carrying out the common measure 
shall be 10 years. 
2. Every year, Portugal shall submit a progress report 
on the common measure in accordance with the 
procedure which shall be laid down by the Commission 
when the programme is approved. 
3. Before the expiry of the 10-year period, the 
Council shall decide, on a proposal from the 
Commission, whether the measure should be extended. 
4. The estimated cost of the common measure to the 
fund is 73 million ECU, that amount being indicative 
only. 
5. Article 6 (5) of Regulation (EEC) No 729/70 shall 
apply. 
Article 11 
1. Applications for repayment shall relate to 
expenditure incurred by Portugal during one calendar 
year and shall be submitted to the Commission before 
1 July of the following year. 
2. Any decision to grant aid under the Fund shall be 
taken in accordance with Article 7 (1) of Regulation 
(EEC) No 729/70. 
3. Advance payments may be granted by the Fund 
depending on the financing arrangements adopted by 
Portugal and the progress of the measures provided for 
in Titles I and II. 4. Detailed rules for the application of this Article 
shall be adopted in accordance with the procedure laid 
down in Article 13 of Regulation (EEC) No 729/70. 
Article 12 
1. Where reference is made to the procedure laid 
down in this Article, the Standing Committee on Agri­
cultural Structure shall be consulted by its chairman, 
either on his own initiative or at the request of the 
representative of a Member State. 
2. The representative of the Commission shall submit 
a draft of the measures to be taken. 
The Standing Committee on Agricultural Structure shall 
deliver its opinion on these measures within a time limit 
which the chairman may lay down depending on the 
urgency of the matters examined. The Committee shall 
adopt its opinion by a majority of 54 votes, the votes of 
the Member States being weighted as provided for in 
Article 148 (2) of the Treaty. 
The chairman shall not vote. 
3. The Commission shall adopt the measures, which 
shall be immediately applicable. 
However, if such measures do not conform to the 
opinion adopted by the Standing Committee on Agri­
cultural Structure, they shall be referred forthwith by the 
Commission to the Council; in such case the 
Commission may defer for up to one month as from 
such referral the application of the measures on which it 
has decided. The Council, acting by a qualified majority, 
may adopt a different decision within one month. 
Article 13 
This Regulation shall enter into force on the third day 
following its publication in the Official Journal of the 
European Communities. 
This Regulation shall be binding in its entirety and 
directly applicable in all Member States.