ARCHIVES HISTORIQUES 
DE LA COMMISSION 
 
 
 
COLLECTION RELIEE DES 
DOCUMENTS "COM" 
 
 
 
 
COM (84) 623 
 
 
 
Vol. 1984/0 237 
  
 
Disclaimer  
Conformém ent au règlement (CEE, Euratom) n° 354/83 du Conseil du 1er février 1983 
concernant l'ouverture au public des archives historiques de la Communauté économique 
européenne et de la Communauté européenne de l'énergie atomique (JO L 43 du 15.2.1983, 
p. 1), tel que modifié par le règlement (CE, Euratom) n° 1700/2003 du 22 septembre 2003 
(JO L 243 du 27.9.2003, p. 1), ce dossier est ouvert au public. Le cas échéant, les documents 
classifiés présents dans ce dossier ont été déclassifiés conformément à l'article 5 dudit 
règlem ent. 
In accordance with Council Regulation (EEC, Euratom) No 354/83 of 1 February 1983 
concerning the openi ng to the public of the historical archives of the European Econom ic 
Community and the European Atomic Energy Communit y (OJ L 43, 15.2.1983, p. 1), as 
amended by Regulation (EC, Euratom) No 1700/2003 of 22 September 2003 (OJ L 243, 
27.9.2003, p. 1), this f ile is open to the public. Where necessary, classified documents in this 
file have been declassified in conformity with Article 5 of the aforementioned regulation.  
In Übereinstimmung mit der Verordnung (EWG, Euratom) Nr. 354/83 des Rates vom  1. 
Februar 198 3 über die Freigabe der historischen Archive der Europäischen  
Wirtschaftsgemeinschaft und der Europäischen Atomgem einschaft (ABI. L 43 vom  15.2.1983,  
S. 1), geändert durch die Verordnung (EG, Euratom) Nr. 1700/2003 vom 22. Septem ber 2003  
(ABI. L 243 vom 27 .9.2003, S. 1), ist diese Datei der Öffentlichkeit zugänglich. Soweit  
erforderlich, wurden die Verschlusssachen in dieser Datei in Übereinstimmung mit Artikel 5  
der genannten Verordnung freigegeben.  
COMMISSION O F THE EUROPEAN COMMUNITIES
COM(84) 623 final 
Brussels, 14 november 1984
COMMISSION REPORT TO THE COUNCIL  
ON THE RESULTS OF THE STRUCTURAL MEASURES ADOPTED  
UNDER THE WINE ACTION PROGRAMME 1980-1986
COM(84) 623 final

- 3 -
INTRODUCTION
The position of the world wine industry, and particularly its European core,  
is now one of structural over-production. About ten years ago, average world  
wine production was still only about 310 m hi, but by 1979 it was 375 m hi, an  
absolute record, and the figures for 1980, 1981 and 1982, were 348.7, 305.7  
and 366 m hi respectively.
Europe, acounting for nearly 71% of world vineyards, provides 80% of total  
production, the discrepancy being largely due to the fact that Asia - with  
14.4% of the vineyards - has vines mainly grown for the production of table  
grapes and dried grapes.
The bulk of world wine production, about 83%, is intended for direct human  
consumption. But wine-drinking is declining fairly steadily, particularly in  
the main wine-growing and consuming countries like Italy and France, but in  
Spain, Portugal and Argentina as well, and this movement is not offset by the  
upward trend in the "new" wine-growing countries, in which wine-drinking was  
not traditional.
This is not the place for an analysis of the reasons for this development or  
for consideration of the real possibilities, if there are any, for controlling  
it, but it is clear that wine-growing has reached a critical stage, the only  
escape from which can be a reduction in production potential, with all the  
socio-economic implications and delicate regional problems this approach must  
entail.
What does this mean for the Community? With a wine-growing area of about  
2.8 m ha, Community vineyards account for 27% of the entire areas under vines  
in the world, of which about 2.5 m ha are under wine vines, providing nearly  
45% of world wine production.
But yields are steadily increasing, under the combined effect of replanting of  
high-yield vine varieties and new plantings in lowlands and especially of the  
use of new production techniques, giving an increase in production of about  
0.7% per year on average in the long term, while at the same time wine  
consumption is declining, on a lasting basis, by nearly 1% per year.
This is all the more disturbing because when Spain and Portugal join,  
available statistics show that Community vineyards would increase to 4.7 m hi  
(by 72%), i.e. 47% of world vineyards, and wine production from 172.9 m hi to  
220.2 m hi (by 27%), i.e. 60% of world production.

- 4 -
The persistent disequilibrium on the table wine market since the record  
harvest of 1973 (175.6 m hi, of which tables wines accounted for 128.1 m hi,  
quality wines p.s.r. 34.1 m hi, other wines 13.1 m hi), quickly showed that  
available intervention machinery, designed originally to clear the market  
during years of heavy harvests (storage contracts, distillation), was  
ill-adapted to the developing situation, as the surpluses were no longer  
recurment but permanent.
In an attempt to stop - or at least slow down - this movement, which, if it  
continued, could disrupt the market, the Community adopted from 1976 onwards,  
on a pragmatic and progressive basis, a range of instruments for regulation  
and controlling Community vineyards (1), designed to encourage both:
- grubbing-up and conversion of vineyards in lowland areas that could be  
irrigated, having no natural and strong suitability for wine-growing, and  
thus really suitable for crop diversification (I);
- grubbing-up and restructuring of vineyards in dry uphill areas suitable for  
quality production and where replanting with improving varieties would  
enable wine more in line with consumers' demands to be grown (II).
(1) Council Regulation (EEC) No 1163/76 of 17 May 1976 on the granting of a  
conversion premium in the wine sector (OJ No L 135, 24 May 1976, p. 34);  
Council Directive 78/627/EEC of 19 June 1978 on the programme to  
accelerate the restructuring and conversion of vineyards in certain  
Mediterranean regions in France (OJ No 206, 29 July 1978, p. 1);
Council Directive 79/359/EEC of 26 March 1979 on the programme to speed up  
the conversion of certain areas under vines in the Charentes departments  
(OJ No L 85, 5 April 1979, p. 34);
Council Regulation (EEC) No 456/80 of 18 February 1980 on the granting of  
temporary and permanent abandonment premiums in respect of certain areas  
under vines and of premiums for the renunciation of replanting (OJ No L  
57, 29 February 1980, p. 16);
Council Regulation (EEC) No 458/80 of 18 February 1980 on collective  
projects for the restructuring of vineyards (OJ No L 57, 29 February 1980,  
p. 27).

- 5 -
PART I
GRUBBING-UP AND CONVERSION
With regard to action encouraging vineyard conversion, the various grubbing-up  
incentive schemes introduced since 1976 can be classified in two main  
categories, those concerning all EEC wine-growing areas (general scheme) and  
those concerning only certain regions (special schemes).
I. General scheme
In 1976, the Community obtained approval of compulsory regulations  
regarding plantings (1) and introduced a first, temporary grubbing—up  
premium, entailing a commitment not to replant within six years. In 1980  
this scheme was strengthened, in allowing of definitive grubbing-up by  
being made financially more attractive and geographically more selective.
Countil—Regulation (EEC) No 1163/76 of 17 May 1976 on the granting of a  
conversion premium in the wine sector
1) Content of the Regulation
Available to all Community wine-growers, the scheme introduced by  
this Regulation instituted a premium for the conversion of areas  
under vine with wine grape varieties, table grape varieties or  
vinestock varieties to other purposes, except the planting of  
certain types of fruit tree (2).
The duration of the scheme was that of the wine years 1976/77  
1977/78 and 1978/79.
(1) Regulation (EEC) No 1162/76 of 17 May 1976 on measures designed to adjust  
wine-growing potential to market requirements (OJ No L 135, 2k 5 1976 s  
32) included: ‘  ’
a ban on any new planting of vines for table wine production, from  
1 December 1976 to 29 February 1980,
(2)- a ban, from 1 September 1976, on any replanting of vines of varieties  
other than recommended or authorized varieties.
Conversion in this context means abandonment for a period of six years.

-  6 -
The conversion incentive took the form of a premium the amounts of  
which, per marketing year, designed to compensate both the grubbing-up  
of the vines and the temporary commitment not to replant, were:
- 1 500 u.a./ha for average productivity areas,
- 1 000 u.a./ha for low productivity areas or the age of which was  
less than two years,
- 2 000 u.a./ha for specialized areas.
The estimated cost to the EAGGF was 84 m u.a. The EAGGF Guidance  
Section reimbursed to the Member States 50% of eligible expenditure.
2) Progress by the end of 1983 (definitive results)
The conversion premium scheme set up by Regulation (EEC) No 1163/76 was  
estimated at the time to induce the grubbing-up of about 50 000 ha of  
average- or low-yield vines, although this would not mean definitive  
elimination of this production potential. From this angle, the  
objectives have been very fully achieved:
Member Number AreasEligible
expenditureEAGGF reimbursement  
(ECU)
States of
beneficiariesconverted
(ha)incurred by  
the
Member States  
(ECU)1983 From the be­
ginning of  
the scheme  
until
31.12.1983
Belgium 262 16,5204 39.768 556 19.884
France 35.805 43.757,2530 61.643.664 36.794 30.821.832
Italy 24.991 34.268,1545 34.020.910 5.327.627 17.010.455
Total 61.058 78.041,9279 95.704.342 5.364.977 47.852.171

- 7 -
A. Council Regulation (EEC) No 456/80 of 18 February 1980 on the granting  
of temporary and permanent abandonment premiums in respect of certain  
areas under vines and of premiums for the renunciation of replanting
1) Content of the Regulation
Applying to all the Community's wine-growing areas, the Regulation  
has three main sections:
(a) Temporary abandonment (for 8 years)
A temporary abandonment premium is paid as follows:
- 1 813 EC/ha for low-productivity areas,
- 2 418 ECU/ha for average-productivity areas,
- 3 022 ECU/ha for high-productivity areas.
The scheme will run out at the end of 1986/87.
(b) Definitive abandonment
The incentive to definitive abandonment is a premium of  
2 418 ECU/ha.
The scheme runs out at the end of 1994/95 if the beneficiary has  
already received the temporary abandonment premium or the  
premium referred to in Regulation (EEC) No 1163/76, and at the  
end of 1983/84 in all other cases.
(c) Renunciation of replanting
A "renunciation" premium of 800 ECU/ha was paid until  
28 February 1982 to wine-growers in areas planted with vines  
enjoying a right of replanting.
The estimated cost of this joint scheme to the EAGGF is  
128.8 m EUA. The EAGGF Guidance Section reimburses the Member  
States 40% of eligible expenditure.

-  8 -
1) Progress by the end of 1983 (incomplete results)
This scheme for grubbing-up and definitive abandonment of 
wine-growing covers an area of at least 100 000 ha. Areas to be 
allocated to this programme are wine-growing areas really abandoned 
under the Mediterranean programme (EEC Directive No 78/627, examined 
below), foreseen at 33 000 ha.  The results presently available, 
which concern only France, are as follows:
Schemes
EAGGF
reimbursements
(ECU) Member
StatesTemporary-
abandonmentDefinitive
abandonmentRenunciation of 
replanting
Benef i- 
ciariesArea
(ha)Benefi­
ciariesArea
(ha)Benef i- 
ciariesArea 
(ha )From the be­
ginning of the 
scheme until 
31.12.1983
France 13.032 23.810,5138 16.496 26.965,0974 5.234 7.128,9656 46.400.067
Total 13.032 23.810,5138 16.496 26.965,0974 5.234 7.128,9656 46.400.067
The schemes got off to a slow start in Italy, mainly because of a 
shortage of funds in Italy itself. It is, however, estimated, on 
the basis of recent information sent in by the Italian Ministry of 
Agriculture, that the areas concerned would be about 33 000 ha. 
Altogether, the areas cleaned by the end of 1983 should total about 
60 000 ha.

- 9  -
II. Special schemes
These are conversion schemes confined to the South of France and the area  
of Charentes.
A. Council Directive (EEC) No 78/627 of 19 Juhe 1978 on the programme to  
accelerate the restructuring and conversion of vineyards in certain
Mediterranean regions in France  
1) Content of the Directive
Conversion of vineyards and their equipment for irrigation is one of  
the two main aspects of the Directive, the other being  
restructuring, which will be considered below.
The Directive provides for the conversion after irrigation of  
33 000 ha (of which, 22 000 ha in the Languedoc-Roussillon).
The incentive to conversion after grubbing-up in areas unsuitable  
for wine-growing comprises:
- EAGGF reimbursement for 35% of the cost of the hydraulic civil  
engineering for irrigation, on the basis of a maximum eligible of  
2 000 u.a. (2 418 EUA) per hectare irrigated,
- a special conversion premium of 2 000 u.a. (2 418 EUA) at most  
per hectare converted. The EAGGF reimburses 50% of these costs.
The duration for the implementation of the scheme referred to is  
five years from the date of approval of the programme presented by  
the French Government, i.e. 19 October 1984.
The main lines of the French programme are as follows:
(a) Irrigation expenditure
26 800 ha, i.e. 50 m u.a. (60.4 m EUA)
of which, French Central Government 40 m u.a. (48.4 m EUA)
of which, wine-growers 10 m u.a. (12 m EUA)
EAGGF contribution 18 m u.a. (12.8 m EUA)

-  10  -
(b) Expenditure connected with the granting of special conversion  
premiums
for 31 700 ha, i.e.: 29 m u.a. (35 m EUA) for the French
Republic, and
29 m u.a. (35 m EUA) chargeable to the  
EAGGF.
These 31 700 hectares were broken down as follows:  
-location of areas grubbed-up for conversion
- Languedoc-Roussillon 71,3% 
(Aude, Gard, Hérault, Pyrénées Orientales)
- other departments 28,7% 
(Ardèche, Var, Vaucluse, Bouches du Rhône)
-substitute crops
- open field vegetables 15%
- vegetables under cover 27%
- fruit trees 13%
- seeds 5%
- other 40%.
2) Progress at 31.12.1983 (incomplete figures)
Member
States SchemeNumber of  
beneficiariesArea
concerned
(ha)EAGGF reimbursement  
(ECU)
From
1983 beginning
of scheme
until
31.12.1983
5.  503.79412.615.232
165.087165.087
5.668.88112.780.319France Conversion
Irrigation5.600 
1911.357,9635  
396,7100
Total
Because of time-lags between work carried out aiid payments, it  
may be estimated that nearly 15 000 ha had been converted as at  
31 December 1983.

-  11 -
B. Council Directive (EEC) No 79/359 of 25 March 1979 on the programme to  
speed up the conversion of certain areas under vines in the Charentes  
Departments
1) Content of the Directive
The purpose of this Directive was to speed up conversion of some of  
the vineyards used for production of wine suitable for the  
production of certain wine spirits with a registered designation of  
origin, by the granting of a special conversion premium not  
exceeding 4 000 u.a. per hectare converted.
The scheme was to cover only 1979/80, 1980/81 and 1981/82. The  
total cost was estimated at 30 m u.a. and the EAGGF reimbursed  
France 50% of eligible expenditure up to a total maximum of  
7 500 hectares.
The French scheme, approved on 18 October 1979, provided for  
staggering of grubbing-up prior to conversion, i.e.:
- 1979/80: 5 000 hectares
- 1980/81: 1 500 hectares
- 1981/82: 1 000 hectares.
The 7 500 hectares broke down as follows:
(a) Ages of wines grubbed up
0 to 10 years: 33,6%
10 to 20 years: 34,9%
20 to 35 years: 24,3% )
) 31,5%
35 years and over: 7,2%)
(b) Location of vines grubbed up
- Grande et Petite Champagne: L%
- Borderies: 0,7%
- Fins bois: 27,4%
- Bons bois: 59,6%
- Bois ordinaires: 11,3%.

-  12  -
(c) Substitute crops
- Cereals: 62,8%
- Fodder: 24,9%
- Vegetables and
fruit trees: 1,3%
- Other: 11%.
2) Progress as at 31.12.1983 (final results)
Member
StatesNumber of  
beneficiariesArea
converted
(ha)EAGGF reimbursements  
(ECU)
From
:  1983 beginning
of scheme
until
31.12.1983
:  4.728.614 13.352.039 France 4.230 6.084,7970
Grubbing-up operations not carried out under the specific directive  
may be carried out under the general scheme set up by Regulation  
(EEC) No 456/80.
PART II
GRUBBING-UP OF VINES AND RESTRUCTURING
Action to encourage restructuring of vineyards covers two schemes, set up by  
two separate texts, applying to different regions. At the outset,  
restructuring constituted the second part of Directive (EEC) No 78/627 (the  
first part, already summarized, being the conversion of vineyards and their  
equipment for irrigation, applicable in the south of France. In 1980, the  
scheme was extended, on different bases, to all th^ EEC wine-growing areas,  
except Charentes in respect of vines suitable for e production of certain  
wine spirits with a registered designation of or ;  ,iu.

- 13 -
A. Council Directive (EEC) No 78/627 of 19 June 1978 on the programme to  
accelerate the restructuring and conversion of vineyards in certain  
Mediterranean regions in France
1) Content of the Directive
The Directive provides for the restructuring of 66 000 ha of vineyards  
(of which, 44 000 in Languedoc-Roussillon).
The incentive to restructuring takes the form of a standard public grant  
of 2 600 u.a. (3 143 EUA) per restructured hectare, with an EAGGF  
contribution of 35%.
The duration of this "common measure" is five years from the date of  
approval of the programme submitted by the French Government,
19 October 1984.
The French programme can be summarized as follows:  
(a) Timetable and cost of work
:  Year 1979/80 1980/81 1981/82 1982/83 1983/84 Total :
:  Areas (ha) 2.500 7.300 17.400 17.500 17.500 62.200 :
:  Total cost  
:  in m u.a.  
:  in m EUA6,5
7,919
2315,5
18,745,5
55,075,5
91,4162 : 
196 :
:  Cost
:  French Central  
:  Government  
:  in m u.a.
:  in m EUA4,23
5,U12,35
14,9329,58
35,7629,58
35,7629,26
35,44105 : 
127 :
:  Cost to EAGGF  
:  in m u.a.
:  in m EUA2,27
2,746,65
8,015,92
19,215,92
19,216,24
19,7657 : 
68,9 :

-  14  -
(b) Location of vineyards restructured, as percentages of total
- Languedoc-Roussillon 75,4 %
- Other departements 24,6 %
(Ardèche, Var, Vaucluse, Bouches du Rhône)
2) Progress as at 31.12.1983 (incomplete results)
:  Member  
: States SchemeNumber of  
beneficiariesArea
concerned
(ha)EAGGF reimbursements :  
(ECU) :
1983From :  
beginning :  
of scheme :  
until :  
31.12.1983 :
:  France Restruc­
turing12.966 9.461,0754 4.197.324 9.640.420 :
Total 4.197.324 9.640.420 :
B.  Council Regulation (EEC) No 458/80 of 18 February 1980 on collective  
projects for the restructuring of vineyards
1) Content of the Regulation
The restructuring operations referred to by this Regulation concern  
areas of vineyards producing table wines and those suitable for the  
production of quality wines p.s.r., not including
- category 3 areas (areas unsuitable for wine-growing, deep alluvial  
deposits on plains or valley floors ,  areas suitable for converting  
to other crops),
- areas qualifying for directive 78/627/EEC and for the duration of  
this directive,
- Charentes vines for the production of certain wine spirits with  
registered designation of origin.
The restructuring operations may includ · ' „  plantings up to 10% of the  
area replanted and newly planted.

- 15 -
For table wines, a project for collective restructuring operations must  
generally cover a vineyard area of at least 100 ha, made up of unbroken  
wine-growing areas normally not smaller than 2 ha.
Restructuring aid is granted in the form of a premium/ha, fixed as  
follows:
- The Member States fixes the premium between 2 418 and 3 022 ECU/ha;
- for new plantings, the amount eligible may not exceed 2 418 ECU/ha.
The programme is restricted to 240 600 ha, of which:
- table wines: 194.800 ha,
- quality wines p.s.r.: 45.800 ha.
The breakdown by Member State has been set as follows:
Area concerned (ha)
Member States
Table wines Winesp.s.r.
Germany - 7.000
Ellas 13.600 3.000
France 54.200 20.000
Italy 127.000 15.000
Luxembourg - 800
Total 194.800 45.800
The EAGGF Guidance Section reimburses the Member States 30% of the  
eligible expenditure. The estimated cost of the "common measure"  
chargeable to the EAGGF is 189.9 m ECU.
The duration of the scheme has been set at seven wine years from  
1 September 1980.

- 16 -
2) Progress as at 31.12.1983 (incomplete results)
Number of  
projects  
financed  
by the 
EAGGFAreas cc  
(ha
1982
(2 instal­
ments )jncerned
1983
(2 instal­
ments )Total
investments
(ECU)Assistance
paid
(ECU)
France
Italy
Germany60
27
619.043
2.472,515.218
30.858,1712
1.141,65318.562.803
56.901.343
20.545.27024.900.495
4.441.041
1.172.793
TOTAL 93 68.731,  3212 396.009.416 30.514.329

17
CONCLUSION
Despite the appreciable results obtained from the various Community vineyard  
conversion and restructuring schemes launched since 1976, the balance between  
the supply of and the demand for table wine has continued to deteriorate,  
since the Community is planning at the present time to distil about 32 million  
hi of surpluses, i.e. more than a quarter of the 1983 table wine production  
(118 m hi).
The situation has become so disturbing that the Council recently decided, when  
it adopted the 1984/85 prices package (1):
- to renew until 1990 the ban on any new planting of vines for table wines  
sector, and to extend this measure to vines for quality wines p.s.r. and  
table grapes;
- to pursue and amplify the various schemes for improving and reducing the  
Community wine production potential.
Will this approach suffice to restore lasting equilibrium in this sector and  
will it enable the effects of the forthcoming accession of Spain and Portugal  
to be cushioned, bearing in mind that Spain, for example, already  
over-produces about 6 million hi? The question is now one of the greatest  
importance.
In view of the lasting surpluses, these must be doubts as to the wisdom of  
pursuing vineyard modernization schemes which are liable, precisely because of  
technical progress and the improvement in breeding materials used, to lead  
higher yields, and therefore, in the long term to an even more difficult  
situation than that with which the Community already has to contend.
The goals set in the legislation introduced under the 1980-86 wine action  
programme, essentially based on incentives, are sound, but the legislation  
must be strengthened to achieve improved effectiveness; only a forced  
reduction in areas under vines will enable the development of wine-growing  
potential to be durably influenced.
But action of this kind must necessarily take time and, seen in isolation;  
obviously cannot have an immediate impact on the control of production  
potential. It must therefore be accompanied by measures designed to take more 
immediate effect with regard to market equilibrium.
(1) Regulation (EEC) No 1208/84 of 27 April 1984 (0J No L 115, 1.5.1984, p.  
77).

- 18 -
In its recent report to the Council on the situation and outlook for the  
Community's wine market (1), the Commission made a number of proposals (2) in  
this connection, to which reference should be made.
(1) COM(84)440 final, 25 July 1984.
(2) C0M(84)515 final, 12 September 1984, .vid COM(84)539,  28 September 1984.