COMMISSION OF THE EUROPEAN COMMUNITIES 
COM(93)85 final 
Brussels, 22 March 1993 
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it Proposal for a 
COUNCIL REGULATION (EEC) 
amending Regulation (EEC) No 1442/88 on the granting, 
for the 1988/89 to 1995/96 wine years, of permanent 
abandonment premiums in respect of wine-growing areas 
(presented by the Commission) 
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EXPLANATORY MEMORANDUM 
This proposal for a Regulation makes several changes to the current scheme for 
the permanent abandonment of wine-growing areas which are necessary for its 
continued application. 
1. Firstly, it is necessary to continue the current method of financing by the 
EAGGF Guarantee Section, which expired on 31.12.1992. 
2. Given the persistent imbalance on the wine market, an assessment of the 
structural changes due to the grubbing-up scheme is desirable in order to be 
able to prepare for the necessary adjustments in the years ahead. 
3. At present, application of the grubbing-up scheme entails difficulties for 
the remaining wine-growers, in particular as a result of fragmentation 
(breaking-up of wine-growing areas as a result of grubbing-up within those 
areas), which could jeopardize restructuring programmes and entail additional 
production costs. 
The abandonment scheme should be made compatible with land-consolidation or 
parcel-exchange operations. Such operations could also enhance the 
development of grubbed-up areas, in particular by facilitating 
reafforestation programmes or agri-environmental measures (Regulations (EEC) 
No 2080/92 and No 2078/92). 
4. Some definitions must be clarified and measures amended in order to improve 
administration and prevent fraud. 
5. Given the extent of grubbing-up in Greece, provision is made for changes to 
the scheme there to avoid unbalanced application between Member states. 
The technical adjustments set out above must inevitably be made at Community 
level. 
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Proposal for 
COUNCIL REGULATION (EEC) No 
of 
amending Regulation (EEC) No 1442/88 on the granting, 
for the 1988/89 to 1995/96 wine years, of permanent 
abandonment premiums in respect of wine-growing areas 
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, 
Whereas Article 17a of Regulation (EEC) No 1442/88(1), as last amended by 
Regulation (EEC) No 1869/92(2), provides for the Guarantee Section of the EAGGF 
to finance premiums for the permanent abandonment of wine-growing areas in 
respect of any abandonment operation carried out between 1 January 1990 and 
31 December 1992; whereas it is essential to retain this financing arrangement 
beyond that date and up to 31 December 1996 in order to pursue the aim of 
rebalancing the wine market and avoiding continued intervention on a massive 
scale; 
(1) OJ No L 132, 28.5.1988, p. 3. 
(2) OJ No L 189, 9.7.1992, p.6 
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Whereas, furthermore, the experience of*the last three wine years indicates that 
certain changes are required in the interests of effective operation of the 
scheme; 
Whereas the preferential distillation scheme provided for in Article 8 of 
Regulation (EEC) No 1442/88 whereby producers who so request are exempted totally 
or in part from compulsory distillation depending on the actual reduction in 
production potential requires complicated administrative arrangements; whereas it 
should be discontinued; 
Whereas the increases provided for in Article 2(2) and the second subparagraph of 
Article 2(5) payable if the areas concerned constitute the entire wine-growing 
area cultivated by the applicant should also be discontinued since they have not 
had the economic effect anticipated; 
Whereas application of the scheme for the abandonment of wine-growing areas is 
likely to lead to major structural change in certain Community production 
regions; whereas it is important to carry out a thorough evaluation study to 
measure the impact of the scheme and prepare any necessary adjustments; 
Whereas provisions should be laid down to limit fragmentation (the breaking up of 
wine-growing areas as a result of grubbing-up within those areas), in particular 
in areas that are being restructured or which are of major wine-growing 
importance, and to facilitate the introduction of the multiannual zonal 
programmes provided for in Article 3 of Regulation (EEC) No 2078/92 on 
agricultural production methods compatible with the requirements of the 
protection of the environment and the maintenance of the countryside(^), or 
programmes provided for in Article 4 of Regulation (EEC) No 2080/92(4), 
(3) OJ No L 215, 30.7.1992, p. 85. 
(4) OJ No L 215, 30.7.1992, p. 96. 
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instituting.a Community aid scheme for forestry measures in agriculture, and to 
ensure compatibility with the Community aid scheme for early retirement laid down 
in Regulation (EEC) No 2079/92(5); whereas, in such circumstances, granting an 
additional premium to promote the exchange of parcels should help achieve these 
objectives; 
Whereas greater technical clarification is required of what grubbing-up must 
involve and also with regard to calculation of the yields determining the premium 
amount; 
Whereas the high rate of abandonment of wine-growing areas given over to the 
production of grapes for drying in Greece causes serious socio-economic problems 
in the regions concerned and could cause a serious imbalance vis-à-vis other 
regions of Greece and other regions of the Community; whereas in order to prevent 
such clearly unbalanced application the scheme should be discontinued as regards 
areas in Greece given over to the cultivation of grapes for drying; 
Whereas the technical adjustments set out above must inevitably be made at 
Community level and must comprise corresponding amendments of the regulations in 
force, 
HAS ADOPTED THIS REGULATION: 
Article 1 
Regulation (EEC) No 1442/88 is hereby amended as follows 
1. The last indent of Article 1(1)(b) is deleted. 
2. Article 2(2) is deleted. 
(5) OJ No L 215, 30.7.1992, p. 91. 
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3. The following subparagraph is added,to Article 2(3): 
"If the area on which wine-growing is permanently abandoned constitutes the 
entire area under vines of the holding, the average yield determining the 
premium rate applicable may not be higher than the average of the yields 
notified as harvest declarations in the five wine years preceding submission 
of the premium application. However, the harvest quantities declared from 
the highest-yielding wine year and from the lowest-yielding wine year shall 
not be taken into account in the calculation of this average." 
4. The last subparagraph of Article 2(5) is deleted. 
5. The following is added to Article 4(2): 
"Grubbing up shall comprise removal of the vine stocks (main root and wood)." 
6. Article 8 is deleted. 
7. Article 9 is replaced by the following: 
"If the holder qualifies for the aid provided for in Council Regulation (EEC) 
No 2079/92 of 30 June 1992 establishing a Community aid scheme for early 
retirement in agriculture, this aid may be granted in whole or in part in 
addition to the abandonment premium if the parcels which are to be 
permanently abandoned are covered by land consolidation or structural 
improvement programmes, in order to further the objectives of these 
programmes. Otherwise the cumulative total of amounts granted under these two 
measures shall be limited to the amounts laid down in Article 3 of Regulation 
(EEC) No 2079/92." 
8. The following Article is inserted: 
"Article 9a 
1. Where permanent abandonment of areas under vines: 
- would fragment the vineyard in wfcieh they are located* in particular 
if restructuring is being carried «at in the zone, 
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- . or would result in the loss of land recognized as producing grapes 
of good quality, 
or could result in environmental damage, an additional premium of 
ECU 1 500 per hectare shall be granted to the applicant where 
permanent abandonment is carried out on parcels other than his own 
as a result of an accompanying procedure of parcel exchange. 
In this case, the amount of the premium shall be calculated on the 
basis of the applicant's parcel and grubbing-up must cover at least an 
equivalent area; where the productive capacity of the parcels proposed 
for exchange is less than that of the applicant's parcel, the area to 
be grubbed up must be such that the reduction in potential is at least 
identical to that which would result from grubbing-up of the 
applicant's parcel. 
2. Land consolidation or parcel exchange operations linked to the 
permanent abandonment of wine-growing areas as referred to in 
paragraph 1 may be included in the multiannual zonal programmes 
provided for in Regulation (EEC) No 2078/92 or Regulation (EEC) 
No 2080/92. The permanent abandonment premiums shall be granted in 
addition to the aid provided for in those Regulations." 
Article 11 is replaced by the following: 
"Article 11 
Before the end of the 1993/94 wine year the Commission shall submit to 
Parliament and the Council an evaluation study on the scheme for the 
permanent abandonment of wine-growing areas. The report shall deal in 
particular with the impact of the scheme on viticultural production 
structures and shall be accompanied by any proposals considered to be 
appropriate. 
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The costs involved in drawing up the report shall be considered as 
expenditure on action to stabilize the agricultural markets within the 
meaning of Article 3 of Council Regulation (EC) No 729/70 of 21 April 1970 on 
the financing of the common agricultural policy^6*." 
10. In Article 17a: 
"31 December 1992" in the third paragraph is replaced by 
"31 December 1996"; 
the last paragraph is deleted. 
11. The following Article is inserted: 
"Art icle 22 
This Regulation shall not apply to areas in Greece used to grow grapes for 
dryi ng." 
Article 2 
This Regulation shall enter into force on the third day following its publication 
in the Official Journal of the European Communities. 
Point 10, firoi indeni, of Article 1 shall, however, apply from 1 January 1993. 
This Régulât ion shall be binding in its entirety and directly applicable in all 
Member States. 
<e) #J Wo L 94, 28.4. K)70, *>.13 
} 
FINANCIAL STATEMENT 
DATE: 
1. BUDGET HEADING: 1611 and 164 APPROPRIATIONS: ECU 474 and 366 million 
2. TITLE: Proposal for a Council Regulation amending Regulation (EEC) No 1442/88 on the granting, for the 
1988/89 to 1995/96 wine years, of permanent abandonment premiums in respect of wine-growing areas. 
3. LEGAL BASIS: Council Regulation 1696/71 
4. AIMS OF PROJECT: 
Ensure the smooth continuation of the current scheme for the permanent abandonment of wine-growing areas. 
Amendments to Regulation 1422/88 with a view to improved management and fraud prevention. 
5. FINANCIAL IMPLICATIONS 
5.0 EXPENDITURE 
- CHARGED TO THE EC BUDGET 
- XXXXXXXX/INTERVENTION) 
- xxxxxxxxxxxxxxxxxxxxxxx 
5.0.1 ESTIMATED EXPENDITURE 
5.1.1 xxxxxxxxxxxxxxxxx Period of 12 months 
p.m. Current Financial Year 
1993 
p.m. Following Financial Year 
1994 
p.m. 
1955 
p.m. 1996 
p.m. 1997 
p.m. 1998 
5.2 METHOD OF CALCULATION: 
6.0 CAN THE PROJECT BE FINANCED FROM APPROPRIATIONS ENTERED IN THE RELEVANT CHAPTER OF THE CURRENT BUDGET? 
YES 
6.1 CAN THE PROJECT BE FINANCED BY TRANSFER BETWEEN CHAPTERS OF THE CURRENT BUDGET? 
NO 

ISSN 0254-1475 
COM(93) 85 final 
DOCUMENTS 
EN 03 
Catalogue number : CB-CO-93-106-EN-C 
ISBN 92-77-53503-2 
Office for Official Publications of the European Commirnities 
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