15. 4. 88 Official Journal of the European Communities No C 100/9 
II 
(Preparatory Acts) 
COMMISSION 
Proposals for Council Regulations (EEC) amending the common organization of the market in 
wine 
(ACTION TAKEN PURSUANT TO THE EUROPEAN COUNCIL IN BRUSSELS) 
COM(88) 125 final 
(Submitted by the Commission to the Council on 3 March 1'. 
(88/C 100/10) 
I 
Proposal for a Council Regulation (EEC) amending Regulation (EEC) No 822/87 on the 
common organization of the market in wine 
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 Act of Accession of Spain and 
Portugal, and in particular Article 89 (2) 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 Article 39 of Council Regulation (EEC) No 
822/87 of 16 March 1987 on the common organization 
of the market in wine (l), as last amended by Regulation 
(EEC) No 3992/87 (2), provides for compulsory distil­
lation to establish balance on the table wine market; 
Whereas the price applicable at present to table wine 
delivered for compulsory distillation is 50 % of the guide 
price up to a volume of 12,5 million hi and 40 % for 
further quantities; 
Whereas the degree of support thus granted does not 
sufficiently discourage the production of wine not suiting 
market requirements and consequently hinders disposal 
of the major structural surplus in the sector; whereas 
therefore that degree of support should be reduced; 
(') OJ No L 84, 27. 3. 1987, p. 1. 
O OJ No L 377, 31. 12. 1987, p. 20. Whereas to that end it should be laid down that, 
progressively by the beginning of the 1990/91 wine year, 
the price should be fixed, using for quantities of table 
wine exceeding 10 % of normal utilization, a 
progressively lower percentage of the guide price; 
Whereas the arrangements provided for in this Regu­
lation amend the Community rules in force and 
accordingly require the rules in Article 122 (2) of the Act 
of Accession to be amended, whereas it should be 
provided that the Commission fix for Spain a rate of 
progressive alignment on the ratio existing between the 
guide prices and those to be fixed for compulsory distil­
lation for the 1988/89 and 1989/90 wine years for the 
Community of Ten; 
Whereas, in order to preserve the necessary balance 
between prices under the various compulsory distillation 
schemes, the price for the distillation of the by-products 
of wine-making should also be progressively reduced, as 
should that for the distillation of wines referred to in 
Article 36 of Regulation (EEC) No 822/87, 
HAS ADOPTED THIS REGULATION: 
Article 1 
Regulation (EEC) No 822/87 is hereby amended as 
follows: 
1. In Article 35: 
— the following paragraph 5.a) is added: 
'5.a) From 1990/91 the buying-in price of grape 
marc, wine lees and any wine delivered for 
No C 100/10 Official Journal of the European Communities 15. 4. 88 
distillation shall be 20 % of the guide price 
for table wine of type A I for the marketing 
year concerned. For 1988/89 and 1989/90 
the buying-in price shall be fixed, in 
accordance with the procedure provided for 
in Article 83, in such a way as to ensure a 
smooth transition between the percentage of 
the guide price applying for 1987/88 and the 
percentage applying from 1990/91.' 
— the second indent of paragraph 7 is deleted. 
2. The first subparagraph of Article 36 (3) is replaced by 
the following: 
'3. The buying-in price for wine delivered for 
distillation under paragraphs 1 and 2 shall be: 
— for 1987/88, 50 % 
— for 1990/91, 25 % 
of the guide price for table wine of type A I fixed for 
the wine year concerned. 
For 1988/89 and 1989/90 the buying-in price shall be 
fixed, in accordance with the procedure provided for 
in Article 83, in such a way as to ensure a smooth 
transition between the percentages referred to above.' 
3. In Article 39: 
— the third subparagraph of paragraph 4 is replaced 
by the following: 
'That percentage shall be obtained from a 
progressive scale based on the yield per hectare, 
may vary between regions according to yields 
obtained in the past. 
It may be nil for yields which do not exceed, for 
the wine year in question, 70 % of the average 
yield of table wine for the region. It may also be 
nil for producers whose yields per hectare are less 
than a level to be determined. 
It may exceed 80 % only for yields which, for the 
wine year concerned, are more than 200 % of the 
average yield of table wine for the region.' 
— Paragraph 6 is replaced by the following: 
'From 1990/91 the purchase price for table wines 
delivered for compulsory distillation shall be fixed 
according to the quantities to be distilled and: 
— where the total quantity for distillation does 
not exceed 10 % of normal utilization for the 
wine year concerned as determined in the forward estimate referred to in Article 31, it 
shall be equal to 50 % of the guide price fixed 
for the wine year in question, for each of the 
types of table wine, 
— where the total quantity for distillation is more 
than 10 % of normal utilization as referred to 
in the first indent, it shall be equal to the 
percentage of the guide price of each of the 
types of table wine fixed for the wine year in 
question, given by the weighted average of the 
percentage referred to in the first indent 
applied to the quantity corresponding to 10 % 
of normal utilization and zero for quantities 
exceeding that volume. 
For the 1988/89 and 1989/90 wine years: 
— the 50 % of the guide price shall apply to the 
quantity referred to in the first subparagraph, 
— where the total quantity to be distilled is more 
than that referred to above, the percentage of 
the guide price to be used for determining the 
purchase price shall be fixed in accordance 
with the procedure laid down in Article 83, in 
such a way as to ensure a smooth transition 
between the percentages of the guide price 
applying for the 1987/88 and 1990/91 wine 
years respectively. 
The purchase price to be paid by distillers to 
producers for quantities delivered for compulsory 
distillation in excess of those delivered for 
preventive distillation may not be less than the 
price provided for in the preceding subparagraphs. 
It shall also apply to wine in a close economic 
relationship with each type of table wine.' 
Article 2 
By way of derogation from Article 122 (2) of the Act of 
Accession, the purchase price for the 1988/89 and 
1989/90 wine years shall be fixed for Spain, in 
accordance with the procedure laid down in Article 83, 
in line with a rate of progressive alignment on the 
purchase price fixed pursuant to Article 1 (2). 
Article 3 
This Regulation shall enter into force on 1 September 
1988. 
This Regulation shall be binding in its entirety and 
directly applicable in all Member States. 
15. 4. 88 Official Journal of the European Communities No C 100/11 
II 
Proposal for a Council Regulation (EEC) on the granting, for the 1988/89 to 1995/96 wine 
years, of permanent abandonment premiums in respect of areas under vines 
THE COUNCIL OF THE EUROPEAN COMMUNITIES, 
Having regard to the Treaty establishing the European 
Economic Community, and in particular Articles 42 and 
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 steadily increasing imbalance on the market 
in wine is such that action must be taken on a scale and 
of an effectiveness to bring production, in the medium 
term, definitively back to the level of demand; 
Whereas experience gained in the reduction of vine-
growing potential, in particular under Council Regu­
lation (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 amended by Regulation (EEC) 
No 3775/85 (2), shows that the effort made must be 
stepped up; whereas, in particular, the facility for aban­
donment of vine-growing areas must be extended 
without delay to all classes of areas under vines; 
Whereas an incentive should be given to the aban­
donment of vine-growing areas through the grant, 
during the next eight wine years, of premiums in 
amounts to be varied on the basis of the productivity of 
the areas concerned, covering the cost of the grubbing-
up operations, the loss of replanting rights and the loss 
of future income; 
Whereas, in the cases of producers who definitively 
abandon farming, the measure may be made more 
attractive if provision is made to replace the single 
premium scheme by a system of annual premiums; 
Whereas a reduction in the number of vine-growing 
holdings will enable the dispersion of supply on the 
market to be limited and market management to be 
simplified; whereas there should therefore be a futher 
incentive for vine-growers abandoning the whole of their 
holdings; Whereas, to enable the payment of abandonment 
premiums to be properly administered, deadlines should 
be set for the submission of applications and conditions 
to be complied with by the applicant should also be laid 
down; 
Whereas the abandonment of vineyards by growers who 
are members of cooperative organizations jointly 
processing grapes harvested by their members may 
reduce the quantities of grapes delivered and thereby 
increase processing costs; whereas such negative effects 
should be compensated; whereas, bearing in mind the 
differences which exist in vine-growing structures within 
the Community, any compensation scheme should be 
adopted by the Member State; 
Whereas, as a matter of fairness, growers implementing 
this scheme and thus contributing to the effort to restore 
lasting sound conditions on the market should enjoy a 
reduction in, ranging as far as exemption from, their 
contribution to the scheme for compulsory distillation of 
table wines referred to in Article 39 of Council Regu­
lation (EEC) No 822/87 (3), as last amended by Regu­
lation (EEC) No 3992/87 (4); whereas a reasonable 
arrangement would be for this reduction to be 
proportionate to the area grubbed up, and it would also 
seem reasonable to require, for the grant of such benefit, 
that the reduction in the relevant producer's vine-
growing potential should represent at least 100 hi; 
Whereas the utilization of areas released following the 
abandonment of vine-growing should be limited in order 
to avoid disturbance of the market for other agricultural 
products; 
Whereas the permanent abandonment premium serves 
the interests of the Community and is designed to 
achieve the objectives laid down in Article 39 (1) (a) of 
the Treaty; 
Whereas, in order to ensure maximum effectiveness for 
the proposed measure, it is necessary to fix time-limits 
for the payment of premiums to the recipients, and to 
provide for the possibility of advances being paid against 
a security and for payment by the European Agricultural 
Guidance and Guarantee Fund (EAGGF) to Member 
States of advances corresponding to the Community 
contribution, while ensuring that the payment of 
premiums and the final EAGGF contribution are subject 
to grubbing up being carried out under the conditions 
laid down, 
(') OJ No L 88, 28. 3. 1985, p. 8. 
(2) OJ No L 362, 31. 12. 1985, p. 39. (') OJ No L 84, 27. 3. 1987, p. 1. 
(4) OJ No L 377, 31. 12. 1987, p. 20. 
No C 100/12 Official Journal of the European Communities 15. 4. 88 
HAS ADOPTED THIS REGULATION: 
Article 1 
1. Vine-growers cultivating areas under vines: 
(a) for the production of: 
— wine, 
— table grapes, 
— grapes for drying, 
(b) used as root-stock nurseries planted with root-stock 
varieties listed in the classification of vine varieties, 
— shall, during the 1988/89 to 1995/96 wine years, 
on application and as provided for in this Regu­
lation for the permanent abandonment of vine-
growing, qualify for: 
— a permanent abandonment premium, 
— preferential arrangements as regards distil­
lation. 
2. The grant of the permanent abandonment 
premiums shall entail for the grower forfeiture of 
replanting rights in respect of the area for which the 
premium is granted. 
That same area may only be afforested or used for non-
agricultural purposes. 
The Member States shall take all appropriate action to 
ensure that the land is kept in good heart. They shall lay 
down provisions needed for land management with a 
view to protecting the environment and natural 
resources. 
The Member States may authorize, in respect of some or 
all of their territory, use of farm land set aside: 
(a) for grazing, provided: 
— that a maximum stocking density per hectare of 
grazing land, to be determined, is complied with; 
— that fodder produced on the holding is not 
marketed; 
(b) for the production of lentils, chick peas and vetch. 
The Member States' authorization provided for in the 
preceding subparagraph is restricted to three years from 
... ('). Before expiry of this deadline, the Commission 
shall lay before the Council a report on the application 
of the authorization. 
In addition, at the request of the Member State 
concerned, the Commission may, in accordance with the 
procedure laid down in Article 83 of Regulation (EEC) 
No 822/87, permit them to authorize in demarcated areas the use of land released for the production of agri­
cultural products particularly suited to the conditions of 
the said areas for which there is no risk of structural 
overproduction in the Community. 
Article 2 
1. The amount of the premium per hectare is hereby 
fixed as follows: 
(a) for areas of not less than 10 ares but not more than 
25 ares planted with wine-grape varieties and consti­
tuting the entire vineyard area of the holding 
concerned: 3 600 ECU; 
(b) for areas of more than 25 ares planted with wine-
grape varieties: 
— 1 200 ECU if the average yield per hectare of the 
said areas is not more than 20 hi, 
— 4 200 ECU if the average yield per hectare of the 
said areas is more than 20 hi but not more than 
50 hi, 
— 6 000 ECU if the average yield per hectare of the 
said areas is more than 50 hi but not more than 
90 hi, 
— 7 800 ECU if the yield per hectare of the said 
areas is more than 90 hi but not more than 
130 hi, 
— 9 600 ECU if the yield per hectare of the said 
areas is more than 130 hi but not more than 
160 hi, 
— 10 200 ECU if the yield per hectare of the said 
areas is more than 160 hi; 
(c) for areas planted with varieties classified in the 
administrative unit concerned either as table grapes 
or as both table and wine grapes: 
— 10 800 ECU in the case of large-grape varieties, 
trained by the pergola method, contained in a list 
to be drawn up, 
— 8 400 ECU in the case of varieties other than 
those referred to in the first indent trained by the 
pergola method, 
— 7 200 ECU in the case of the varieties referred to 
in the first indent trained by a method other than 
the pergola method, 
— 6 000 ECU in the case of varieties other than 
those referred to in the first indent trained by a 
method other than the pergola method; 
(d) for areas for the production of wine for making wine 
spirits of designated origin in the Charentes region: 
7 200 ECU; 
(e) for areas planted with varieties classified in the 
administrative unit concerned as dried-grape varieties 
or as both dried-grape and other varieties: 7 200 
ECU; 
(') Date of entry into force of the Regulation. (f) for areas used as root-stock nurseries: 6 000 ECU. 
15. 4. 88 Official Journal of the European Communities No C 100/13 
2. The amounts specified in paragraph 1, with the 
exception of the amount referred to in paragraph 1 (a), 
shall be increased by 600 ECU per hectare if the areas 
concerned constitute the entire vineyard area cultivated 
by the applicant. 
3. The yield per hectare of the grubbed-up area 
referred to in paragraph 1 (b) shall be calculated on the 
basis of the average yield declared for the recipient's 
holding and an on-the-spot assessment, carried out by 
the competent body of the Member State concerned 
prior to grubbing-up, of the productive capacity of the 
wine-growing area to be grubbed up. 
4. As regards Spain, the premiums provided for in 
paragraph 1 and the amounts referred to in paragraph 2 
shall be fixed in accordance with the procedure laid 
down in Article 83 of Regulation (EEC) No 822/87 so 
that the difference between the amounts referred to in 
Article 2 (la) of Regulation (EEC) No 777/85 and those 
in paragraphs 1 and 2 is reduced successively by one 
third in the 1988/89 and 1989/90 wine years, the 
Community level applying in that Member State from 
the 1990/91 wine year. As regards Portugal, the 
premiums provided for in paragraphs 1 and 2 shall apply 
from the beginning of the second stage. 
Article 3 
The following shall not qualify for the permanent aban­
donment premium: 
(a) areas under vines located on holdings which total 25 
ares or less, with the exception of holdings of not 
less than 10 ares where the areas constitute the entire 
vineyard area of the holding concerned; 
(b) areas under vines in respect of which infringements 
of Community or national provisions regarding 
planting have been ascertained since 1976; 
(c) areas under vines which are no longer tended; 
(d) areas on which vines were planted after the entry 
into force of this Regulation. 
Article 4 
1. Applications for premiums must be submitted to the 
departments appointed by the Member States before 31 
December of each wine year. 
Applications relating to areas under wine grapes shall be 
accompanied by an official declaration stating the yield 
per hectare calculated in accordance with Article 2 (3). 
2. The grant of the premium shall be subject to a 
written declaration in which the applicant undertakes to 
grub up the vines on the areas in respect of which the 
premium has been applied for or to have them grubbed 
up by 15 May of the year following that in which the 
application is submitted. 3. The premium shall be granted only if the applicant: 
— has, in accordance with national laws and on 
submission of his application, the right to continue 
cultivation of the relevant land for a period of 15 
years, 
— produces, where he does not meet the condition 
specified in the first indent, a written undertaking 
from the owner of the land that he will guarantee 
that the obligations referred to in paragraph 2 are 
complied with or that he will himself comply with 
them. 
If, after the grant of the premium and in the course of 
the period referred to in the first indent of the first 
subparagraph, all or part of the holding passes 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 of the premium or his assignees 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. The Member States may bring forward the dates 
referred to in the first subparagraph of paragraph 1 and 
the first indent of paragraph 2. 
Article 5 
1. For the grant of the permanent abandonment 
premium, mixed cultivation areas shall be expressed as 
specialized cultivation areas on the basis of the 
conversion factor usually used for the vine-growing area 
concerned. 
2. The amount of the permanent abandonment 
premium shall be paid no later than the end of the 
calendar year following that in which the application for 
the premium was submitted, provided the application has 
furnished proof that grubbing up has in fact taken place. 
At his request, the premium shall be paid in advance to 
the producer, provided the latter has put up a security to 
be determined. 
Article 6 
1. The Member States may provide that, for vine-
growers who are members of a wine cooperative or other 
association of vine-growers, the premiums provided for 
in Article 2 (1) shall be reduced by up to 15 %. In such 
case, the sums corresponding to this reduction shall be 
paid to the cooperatives or associations in question. 
2. Without prejudice to paragraph 1, Member States 
may provide for measures comprising national compen­
sation for wine cooperatives and other associations of 
vine-growers who furnish proof that: 
No C 100/14 Official Journal of the European Communities 15. 4. 88 
— they have had to reduce their activity as at result of 
the lower level of deliveries from their members 
following the grant of the permanent abandonment 
premium, 
— the area cultivated by their members has been 
reduced by at least 10 % compared with that 
cultivated during the 1987/88 wine year. 
The amount of the national compensation may not 
exceed the losses due to the reduction in activity. 
3. Member States shall inform the Commission of any 
provisions they may adopt pursuant to this Article. 
Article 7 
The Council, acting by a qualified majority on a 
proposal from the Commission, may alter the amount of 
the premium. 
Article 8 
1. Producers entitled to the premium as a result of 
permanently abandoning an area for the production of 
table wine shall also qualify, at their request, for 
exemption from the obligation provided for in Article 39 
of Regulation (EEC) No 822/87, which shall be: 
— total, where the holding has undergone a reduction 
in table wine production potential of more than 
50%; 
— 20 %, where the reduction in potential is between 20 
and 35 %; 
— 50 %, where the reduction in potential is more than 
35 and less than 50 %, 
provided always that the reduction in potential is at least 
100 hi. 
The exemption provided for in the preceding 
subparagraph shall not apply to the quantity resulting 
from an increase, after the abandonment premium is 
granted, in vine-growing potential due to an increase in 
yield and/or the area under vines. 
2. The percentage reduction in table wine production 
potential shall be equal to the ratio between the quantity 
obtained by multiplying the yield determined in 
accordance with Article 2 (3) by the area abandoned and 
average table wine production declared for the holding 
during the three wine years preceding grubbing up. 
Article 9 
If the grower qualifies for the annual allowance referred 
to in the first indent of Article 3 (1) of Council Regu­
lation (EEC) No 0000/00 establishing a Community 
scheme to encourage the cessation of farming, the 
permanent abandonment premium referred to in Article 
1 of this Regulation may be granted, at the request of 
the party concerned, in the form of an annual premium of an eligible maximum amount not exceeding 1 350 
ECU/ha. This premium shall exclude, in respect of areas 
under vines, the supplementary premium per hectare 
referred to in the second indent of Article 3 (1) of 
Council Regulation (EEC) No 0000/00. 
Article 10 
1. Member States shall verify that the undertakings 
referred to in Article 4 (2) (3) are being complied with. 
2. Member States shall inform the Commission of the 
results of such verification. 
Article 11 
The Commission shall take all action necessary to ensure 
that the operators concerned by the measures referred to 
in this Regulation have full and detailed information. 
Such action must enable the producers to have 
knowledge of all factors needed in the assessment 
leading to a decision whether or not to abandon some or 
all of their vineyard. 
Article 12 
1. The abandonment premium and the action referred 
to in Article 11 shall be deemed intervention within the 
meaning of Article 3 of Regulation (EEC) No 729/70. 
2. The Guarantee Section of the European Agri­
cultural Guidance and Guarantee Fund, hereinafter 
referred to as 'the Fund' shall reimburse to the Member 
States 70 % of the expenditure borne pursuant to this 
Regulation. 
3. The Fund shall pay the Member States an advance 
on the basis of a notification of: 
— the areas for which applications for the granting of 
the permanent abandonment premium had been 
submitted before the deadline established in 
accordance with Article 4, 
— an undertaking to pay the appropriations received 
from the Fund before the end of the same year to 
recipients who meet the condition laid down in 
Article 4 (2). 
That advance shall be equal to a maximum of 70 % of 
the premiums applied for. 
Article 13 
1. Applications for contributions from the Fund shall 
be submitted by the Member States before 1 May of 
each year. 
2. The Commission shall take a decision on these 
applications in accordance with the procedure laid down 
in Article 7 (1) of Regulation (EEC) No 729/70. 
15. 4. 88 Official Journal of the European Communities No C 100/15 
Article 14 Article 16 
1. The amount due by the Fund to the Member States 
shall be fixed definitively after the introduction, each 
year before 1 April, of a statement of the permanent 
abandonment premiums paid during the previous year to 
recipients. 
2. Advances not expended during the year in respect 
of which they were received shall be deducted from sums 
to be paid in respect of the following year. 
3. Detailed rules for the application of Articles 11 and 
12 and of this Article shall be adopted in accordance 
with the procedure laid down in Article 13 of Regulation 
(EEC) No 729/70. 
Article 15 
1. Without prejudice to Article 8 of Regulation (EEC) 
No 729/70, the Member States shall, in accordance with 
their national laws, regulations and administrative 
provisions, take the necessary measures to recover the 
amounts paid in cases where the undertakings referred to 
in Article 4 are not complied with. They shall inform the 
Commission of action taken in this connection and, in 
particular, shall periodically notify it of the state of 
administrative and judicial procedures relating thereto. 
2. The sums recovered shall be paid to the paying 
agencies or departments and deducted by them from the 
expenditure financed by the EAGGF in proportion to 
Community financing. 
3. The financial consequences of failure to recover 
amounts paid out shall be borne by the Community in 
proportion to Community financing. 
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. The Member States shall inform the Commission, as part 
of the communication referred to in Article 9 (1) of 
Regulation (EEC) No 822/87, during the marketing 
years referred to in Article 1 (1), of the areas under vines 
which have been permanently abandoned in return for 
the corresponding premium. The Commission shall take 
account of this information in the report referred to in 
Article 9 (2) of Regulation (EEC) No 822/87. 
Article 17 
This Regulation shall not impede the granting of aid 
provided for by national rules designed to achieve 
objectives similar to those sought by this Regulation. The 
grant of such aid, with the exception of the compen­
sation provided for in Article 6, shall be subject to review 
on the basis of Articles 92, 93 and 94 of the Treaty. 
Article 18 
Subject to special provisions, detailed rules for the appli­
cation of this Regulation shall be adopted in accordance 
with the procedure laid down in Article 83 of Regulation 
(EEC) No 822/87. 
Article 19 
The wine year 1989/90 referred to in the title, the first 
subparagraph of Article 1(1) and Article 9 (2) of Regu­
lation (EEC) No 777/85 is hereby replaced by that of 
1987/88. 
Article 20 
This Regulation shall not apply to Portugal. 
Article 21 
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.