WRITTEN QUESTION E-3605/00

by Sebastiano Musumeci (UEN) to the Commission

(22 November 2000)

Subject: Replanting vineyards in PDO and PGI areas

Some wine-growers in Italy grubbed up their vineyards in accordance with the scheme for the permanent abandonment of areas under vines introduced by Regulation (EEC) No 1442/88(1).

Consequently they received the appropriate premium, but on the other hand caused the Community substantial savings by reducing the need for subsidised distillation.

Meanwhile, the aim of Regulation (EC) No 1493/1999(2) on the common organisation of the market in wine, and its implementing Regulation (EC) No 1227/2000(3), is to maintain a balance between supply and demand of wine products and enable producers to take advantage of the market with a view to making the sector more competitive in the long term.

It should also be noted that the inalienable right to own property and the freedom to operate a business are enshrined in the Italian Constitution and recognised by the other Member States.

Furthermore, the wine sector has considerable potential as a source of income and employment.

In view of the foregoing, does the Commission consider that it would be possible to amend Regulation (EEC) No 1442/88 to restore the right to replant vines on areas of land particularly suited for that purpose provided that at least ten years had elapsed since the relevant premium was paid in respect of those same areas, holders undertook to replant such areas with valued varieties for which there was a demand on the market and which were covered by the locally applicable PDO and PGI rules, and holders received a lower amount of aid than that which would otherwise be payable in view of the fact that they had already received public funds?

(1) OJ L 132, 28.5.1988, p. 3.

(2) OJ L 179, 14.7.1999, p. 1.

(3) OJ L 143, 16.6.2000, p. 1.

Answer given by Mr Fischler on behalf of the Commission

(10 January 2001)

Council Regulation (EEC) No 1442/88 of 24 May 1988 was repealed by Council Regulation (EC) No 1493/1999 of 17 May 1999 on the common organisation of the market in wine. However, the commitment entered into by the recipient of aid, i.e. the loss of replanting rights, is still valid.

This Regulation substantially altered the common organisation of the market in wine by supporting all initiatives focusing on adapting production to the new quality-related requirements of the market.

The aim of this new policy is to render the sector more profitable, enabling producers to take advantage of the market. To this end, the Council has adopted three types of important measures relating to vineyards. The first is an aid scheme for vineyard restructuring and conversion, whereby vineyards ill-adapted to market needs are replaced by newer, more modern models, planted with varieties for which there is a demand on the market. The second is an aid scheme for the permanent abandonment of wine growing areas intended to eradicate those in regions experiencing major market problems. The Member State is fully authorised to define these areas and to lay down the conditions for applying this aid scheme. It is the Commission's assessment that this scheme will be applied very restrictively by the Member States. The third is the attribution of hectares of new planting rights to Member States for areas intended for the production of quality wines produced in specified regions (quality wines psr) or table wines described by means of a geographical indication, and where it is recognised that, because of its quality, demand for the wine far outstrips production.

The Honourable Member's request to allow the replanting of varieties for which there is a demand on the market in protected designation of origin (PDO) or protected geographical indication (PGI) areas is answered in the system provided for in the Council Regulation. Even if producers previously received permanent abandonment premiums, they can claim new rights if the conditions required by the competent authorities are met.