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DOCUMENTS "COM"
COM(74)916
Vol.1974/0154

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COMMISSION
COM(74)916final.
Bruxelles,june197^
Proposalfora
REGULATION(EEC))OFTESCOUNCIL
layingdomgeneralrulesgoverningthedistillationof-tablewinesduringthe
periodfrom1Jul*rto30September1974
(SubmittedbytheCommissiontotheCouncil)
COa(7^)916final

COM(74)916final
EXPLAWATORY MEMORANDUM
Atitssessionson29/30Aprilarid4June1974theCouncildiscussedthe
situationonthewinemarketfollowingtherequestsmadebyFranceand
Italyforthedistillation ofwineasprovidedforinArticle7ofthe
BasicRegulation.
Asaresultoftherecordharvestin1973stocksreachedanexceptionally
highlevelandattheendofthe1973/74wine-growingyearstoodattheir
highestlevel(morethan80millionhi)since1970fwhenthecommonorgan­
isationofthemarketwasintroduced.
Inseveralmarketingcentrespricesfellbelowtheactivatingprice.
Elsewhere,giventhepresentinflationarysituation,pricesaresteadyas
producersarekeepingtheirwineinexpectation ofintervention measures
beingintroduced.Veryfewtransactions arebeingcarriedout.
PricesinItaly,expressedinunitsofaccount,willfallby12.5/0when
thenewexchangeratefortheliraisintroduced.Inaddition,itmust
notbeforgottenthatuntil15December1974pricesinItalywillcontinue
tobesubjecttoacoefficientofincreaseequaltotheadjustmentof7»79$
notappliedinthissector.Inviewofthismonetaryaspectpriceson
theItalianmarketaregivingcauseforconcern.Finally,acomplete
anddramaticcollapseofthemarketistobefearedfromJulyonwardsasa
resultofthesurplusamountsofwineavailable,producers 1growingfinancial
difficulties andtheneedtostorethewineproducedfromthelastharvest.
Underthesecircumstances theCommissionconsidersitadvisabletopropose
thattheCounciltakeadecisionauthorizingthedistillation ofwineas
providedforinArticle7oftheBasicRegulation.Evenifthe1974
harvestisanormalone,expensivesurplusesofwinecanbeexpectedonthe
marketatthebeginningofthenextwine–growingyearasthemarketimbalance
persists.

COIî(74)916-Efi.
'"1
InitsMemorandum 011"theadjustmentofthecommonagriculturalpolicy,
submittedinNovember1973ftheCommissionintroducedtheideathat
distillation mighttakeplaceatthebeginningofawine-growing year
asameansoftakingpreventiveactiononthemarket.Itwillshortly
incorporatethisideainaproposalforaregulationamendingtheBasic
Regulation.
Withthisaiminminditproposestodaythatactionbetakeninsufficient
timeforaseriousmarketcrisistobeavoided.Inaddition,ifitis
acknowledgedthatthequantitiesofwineproducedwill,inanycase,make
distillation necessarysoonerorlater,theproposedmeasurewillreduce
thecostofprivatestorageaidswhichwouldotherwisebegrantedinthe
comingmonths.
Thedetailsgoverningsuchdistillation arepracticallythesameasthose
proposedforthepreviousmeasurestakenin1971and1972.

0011(74)916-Efinal
Proposalfora
REGULATION(EEC)No/74OPTHECOUNCIL
of
layingdowngeneralrulesgoverningthedistillation
oftablewinesduringtheperiodfrom1Julyto
30September 1974
HIECOUNCILOFTHEEUROPEANCOMMUNITIES,
HavingregardtotheTreatyestablishing theEuropeanEconomicCommunity;
HavingregardtoCouncilRegulation(EEC)No816/701of28April1970
layingdownadditionalprovisionsforthecommonorganization ofthemarket
inwine,aslastamendedbyRegulation(EEC)No2592/73,andinparticular
Article70)thereof;
HavingregardtotheproposalfromtheCommission ;
WhereasArticle7ofRegulation(EEC)No816/70providesthatmeasures
caybeadoptedforthedistillation oftablewinesifthegrantingof
aidtoprivatestoragealoneisunlikelytobeeffectiveinrestoring
pricelevels;
Whereasaidstoprivatestoragehavebeengrantedsincetheendof1973for
winesoftypesEI,RII,RIII,AIandAII;whereasthepricesfor
someofthesewinesarebelowtheactivatingprice;
Whereasthepossibilityofconcludingnine-monthstoragecontractsfor
thesetypesofwineduringtheperiodfrom16December1973to
15February1974hasnotbroughtaboutanyconsiderablerestorationof
pricelevels;
Whereastheabundantharvestof1973/74hasyielded.suppliesconsiderably
inexcessofthenormalrequirements ofthiswinemarketingyear;
10JNoL99,5May1970p.1.
0JHoL269,26September1973.p«1

-2- 0011(74 )9'6-Efixs.1
Whereas theconditions arefulfilled forthecommencement ofadistillation
operation }
Whereas itisnecessary tolaydown theconditions under which such operation
should take place ;whereas theprice forwines to "bedistilled should not
actasanencouragement totheproduction ofwines primarily forthepurpose
ofdistillation ,"butshould nevertheless "besufficiently attractive forthe
operation toheeffective ;
Whereas ,inorder tolimit thescope ofthemeasure fitsduration should he
restricted ;whereas means must also befound of "bringing distillation
operations toanendifprices forthewines referred toabove should again
rise above theactivating price ;
Whereas theprices forwines tobedistilled will notpermit theproducts
ofsuch operation tobemarketed onnormal terms ;whereas anaidshould
therefore bepaid ,theamount ofwhich should befixed ,talcing account of
normal expenses ,atalevel which will make itpossible tomarket the
products ofdistillation .
HAS ADOPTED THIS REGULATI01T :
Article 1
Table wines maybedistilled subject totheconditions laid down bythis
Regulation .
Article 2
1.Producers whowish tohave allorpart oftheir harvest oftable wine
distilled shall conclude delivery contracts ,where appropriate through the
intervention agency ,with distillers selected bythem .
2.Under'such contracts :
(a)thedistiller shall purchase thequantity oftable wine referred
tointhecontract ;

-3- COM(74)916-Efinal
(b)thedistillershall"beobligedtodistillsuchwineandtopay
apricethereforwliichshallnot"belessthanthepricereferred
toinArticle3,
contractsshallspecifV:
tlicquantity,colourandactualalcoholicstrengthofthetable
winesto"bedistilled;
thenameandaddressoftheproducer;
theplaceatwhichthewineisstored;
thenameofthedistillerortheregisteredbusinessorcompanyname
ofthedistillery ;
theaddressofthedistillery.
Article3
1<B-eminimumpurchasepricefortablevanestobedistilledishereby
fixedat1.32u.a.perdegreeandperhectolitre.
2.Thepricereferredtoshallapplyinrespectofunalteredproduct,
ex–producer *spremises.
Article4
1.Distillation msynottakeplacebefore1July1974orafter
30September1974*
However,itmaybedecidedtobringforwardtheclosingdatefordistillation,
particularlyiftheaveragepricesforallthetypesoftablewineonall
marketsshouldfortwoconsecutive weeksremainatalevelabovethe
activatingprice.
Article5
Productsofthedistillation oftablewinesshallhaveanalcoholicstrength
ofnotlessthan&6yowithatoleranceof0.4%aboveorbelow.
Article6
1.Foreachhectolitreofwinethatisdistilled,anaidshallbepaid
bytheintervention agency.
2.Theamountoftheaidisheret^yfixedat0.32u.a.perdegreeandper
hectolitre .3.The
(-0
(13)
(c)
(a)
(e)

3#Theaidshall"bepaidonlyuponproductionofacontractasreferred
toinArticle2anduponproof "beinggiventhatdistillation tookplace
withintheperiodduringwhichsuchoperationwasauthorizedunder
ArticleA.
Article7
1.MemberStatesshalldesignateanintervention agencytoheresponsible
forapplyingtheprovisionsofthisRegulation.
2.Thecompetentintervention agencyshallbetheagencyoftheStateonwhose
territorydistillation takesplace.
Article8
ThisRegulationshallenterintoforceonthedayofitspublicationmthe
OfficialJournaloftheEuropeanCommunities.
ThisRegulationshallbebindinginitsentiretyanddirectlyapplicablein
allMemberStates.
DoneatBrussels, FortheCouncil,
ThePrésident,

COM(74)916-Efinal
FIIIAUCIAL REPERCUSSIONS
InviewofthesurplussituationonthemarketinwinethisRegulation
providesforthedistillationofwinejasreferredtoinArticle7
Regulation(EEC)Ho8l6/70ffortheperiodfrom1Julyto30September1974»
AidgrantedfromtheEAGGFwillbeequalto0.32u.a.perdegree/hectolitre#
S-r.octheamountofwinefordistillation will"be"between6and7million
hectolitres Tencpenditurewilltotal20millionu.a>ttohesetoffagainst
Article691,Item6911ofthe"budgetoftheEuropeanCommunities.
Budget Appropriations Appropriations usea,
1972 27226500
1973 2109000 2109000
1974 32000
Theamountearmarkedinthe1974budgetisnotsufficienttofinancethe
measureenvisaged.ITow,the"Informationmemorandumrelatingtothe
variationsintheexpenditure ,oftheGuaranteeSectionresultingfromthe
CouncilDecisionof23March1974andtothevariationswhichcouldoccurin
1974forotherreasons"of4April1974statesthattherewill"beadditional
expenditureof40trillionu.a.tinderChapter69,Wine.Themeasure
envisagedcan"befinancedundertheoverallappropriations oftheGuarantee
Section.However,thismilrequireatransferofappropriations from
oneChaptertoanother.