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DOCUMENTS "COM"
COM(78)588
Vol.1978/0225

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COMMISSION OFTHEEUROPEAN COMMUNITIES
COM(78)588final
Brussels,9November1978
I
PROPOSALFORACOUNCILREGULATION (EEC)
FIXINGTHEACTIVATING PRICESFORTABLEWINESFOR
THEPERIOD16DECEMBER1978TO15DECEIVER1979.
(Submitted "bytheCommissiontotheCouncil)
*>•
..•r.^ .
.Λ.
/
COM<78)588final

EXPLANATORY MEMORANDUM
Article3(1)ofRegulation (EEC)No816/70layingdownadditionalpro­
visionsforthecommonorganization ofthemarketinwineprovidesfor
thefixing,eachyearbefore16December,ofathresholdpriceactivat­
ingtheintervention system(hereinaftercalledthe"activatingprice")
foreachtypeofwineforwhichaguidepriceisfixed.
Theactivatingpriceistobefixedinthelightofthefollowing
factors:
(a)thestateofthemarketandinparticulartheextentofprice
fluctuations ;
(b)theneedtoensurepricestabilityonthemarketswithoutcausing
structuralsurplusestobuildupintheCommunity;
(c)thequalityoftheharvest;
*
(d)theinformation containedintheforwardestimatesprovidedforin
Article3ofRegulation No24ontheprogressive establishment of
acommonorganization ofthemarketinwine.
(a)Theupwardtrendinaveragepricesobservedatthebeginningofthe
1977/78wineyearhascontinued.Becausetheamountavailablehas
beenbelowtheaverageforrecentyears,pricesforRIandRIItabl
wineshaveremainedatsatisfactory levelsthroughoutthewineyear
equaltoorgreaterthantheguideprice.
Thepossibility ofconcludingshort-termcontractsinrespectof
AItablewines,whichhadexistedwithoutabreaksinceApril1974,
wasabolishedinOctober1977asaresultofthisupswing.The
trend.didnotcontinue,however,afterthenewguidepricesentered
intoforceon16December1977and,aftersomevariationsinthe
firstfewmonthsoftheyear,short-termstoragecontractsforthis
typeofwinewerereintroduced inApril1978,Suchcontract'scan
stillbeconcludedatthepresenttime.
PricesforAllandAIIItablewinesfellprogressively atthe
beginningofthewineyear,andstoragecontractswereopenedin
DecemberforAllwinesandinFebruaryforAIIIwines.Throughout
therestofthewineyearpricessettledfarbelowtheactivating
price.

(b)Thesituationonthemarketinwhitetablewinesdetermines whether
supplementary measuresreservedforholdersoflong-termstorage
contracts(guaranteeofperformance )shouldbeappliedtothese
wines.
(a)Initsproposalsconcerningthefixingofpricesforthe1978/79
wineyear,theCommissionannounceditsintentionofproposingto
theCouncilthattheactivatingpriceforintervention inrespect
ofAItablewinesshouldbelimitedifquotationsconfirmedthe
permanentweakness,andthereforeimbalance,onthemarketinthese
wines.MarkettrendsprompttheCommissiontocarryoutthisin­
tentioninrespectofAItablewinesandotherwhitewines(All
andAIII)whichhaveshownasimilarmarkettrend.
(b)Inthelightof:
*-theforegoingremarks;
-cropforecastswhichatpresentshowthatlesswinewillbeavail­
ablethaninthepreviousyearandthatqualitywillvaryconsi­
derably,insomeregionsbeingbelowaverage;
-thedesirability ofintroducingselectivity betweendifferent
typesofwine,inlinewithcertainmeasuresalreadyadoptedand
0
inaccordancewiththemeasuresproposedforadjustingwine-
growingpotentialtomarketneeds;
-the2%increaseintheguidepricesforalltypesoftablewine
duringtheperiodfrom16December1978to15December1979
(Regulation No1299/78of6June1978-OJNoL160,17.6.1978,
p.12).
Itisproposedthat:
-theactivatingpriceofredwines(RI,RIIandRIII)shouldbe
increasedbythesamepercentageastheguideprices,sothat
theactivatingpriceremainsatthesamerelativelevelaslast
year,i.e.,93%oftheguideprice.

theactivatingpriceforwhitewinesCAI,AllandAIII)should
beincreasedbyonly0.5%,sothattheactivatingpricefalls
from93%to91.5%oftheguideprice.

PROPOSAL PORA
COUNCILREGULATION <EEC)No
fixingtheactivatingpricesfortablewinesforthe
period16December1978to15December1979
THECOUNCILOFTHEEUROPEAN COMMUNITIES ,
HavingregardtotheTreatyestablishing theEuropeanEconomicCommunity,
HavingregardtoCouncilRegulation (EEC)No816/70of28April1970laying
downadditionalprovisionsforthecommonorganization ofthemarketin
1......... .. 2wine,aslastamendedbyRegulation (EEC)No1861/78,andinparticular
Φ
Article3(1)thereof,
HavingregardtotheproposalfromtheCommission,
Whereasanactivatingpricemustbefixedannuallyforeachtypeofwine
forwhichaguidepriceisfixed,takingintoconsideration thefactors
setoutinArticle3(2)ofRegulation (EEC)No816/70; •»
Whereasthequalityofthe1977/78harvestcangenerally beregardedas
slightlybelowaverage;
WhereasthecurrentpricesforRIandRIItablewinesareatleastequal
totheactivatingprices;whereas,however,thepricesforAItablewines
havebeenconsistently lowerthantheactivatingpricesforthelastfour
years,withtheexceptionofashortperiodattheendof1977;whereas
inthemostrecentwineyearthepricesforAllandAIIItablewines
settledatalevelwellbelowtheirrespectiveactivatingprices.
10JNoL99,5.5.1970,p.1
20JNoL215,4.8.1978,p.1

-2-
Whereas,althoughtheharvestwasmoreplentifulthaninthepreviouswine
year,thequantityavailableis,becauseofrelatively lowstocks,slightly
lowerthanthatrecordedforthe1977/78wineyear;
Whereastheleveloftheactivatingpricesmusttakeaccountofthe
factorsmentionedabove;whereastheactivatingpricesfixedforthe
previouswineyearshouldthereforebeincreased,without,however,en­
couragingproduction;
Whereasthedifferenttrendsonthemarketsinredandwhitewinesjustify
the"introduction ofselectivity infixingactivatingprices;whereas,in
particular,theincreaseintheactivatingpricesforwhitewinesshould
belessthanthatadoptedforredwinesandthatadoptedbytheCouncil
fortheguideprices;
Whereastheguidepricefortheperiod16December1978to15December1979
werefixedbyRegulation(EEC)No1299/78^;whereasArticle3(3)of
Regulation (EEC)No816/70providesthattheactivatingpriceisto"be
fixedatthesamestageandistobevalidduringthesameperiodasthe
4guideprice;whereasRegulation (EEC)No945/70determinedthetypesof
tablewinetowhichthesepricesapply, -,
HASADOPTEDTHISREGULATION :
Theactivatingpricesfortablewinesfortheperiod16December1978to
15December1979areherebyfixedasfollows:Article 1
TypeofwineActivatingprice
RIIIRI
RII1.93u.a./degree/hectolitre
1.93u.a./degree/hectolitre
30.00u.a./hectolitre
AIIAI 1.78u.a./degree/hectolitre
39.43u.a./hectolitre
AIII 45.01u.a./hectolitre
0JNoL160,17.6.1978,p.ll
40JNoL114,27.5.1970,p.1

-3-
Article2
ThisRegulationshallenterintoforceon16December1978.
ThisRegulationshallbebindinginitsentiretyanddirectlyapplicable
inallMemberStates.
DoneatBrussels, FortheCouncil
ThePresident
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