WRITTEN QUESTION P-0358/01

by Arlindo Cunha (PPE-DE) to the Commission

(8 February 2001)

Subject: Wine distillation in Portugal

The entry into force of the new Common Organisation of the Market (COM) in wine on 1 August brought about a substantial change in the rules and procedures relating to distillation operations. The previous arrangements provided for preventive distillation, evenly distributed between all the Member States on the basis of an overall balance of wine surpluses. Traditionally, this distillation was carried out in December. The new regulation has abolished the overall wine balance and replaced preventive distillation with voluntary distillation of wines to produce potable alcohol. This operation applies automatically to anyone who registers, and begins on 1 September.

The Portuguese authorities and distillers did not realise in time the far-reaching changes involved and, as the Commission is aware, Portugal was not included in the overall 12 million hectolitre wine distillation quota.

There are three main reasons which would justify remedying this situation. First, it is common knowledge that the new rules have created a considerable imbalance in the European Union, in that two Member States account for 96 % of the wine distillation quota. Secondly, Portugal's supplies in potable alcohol are of vital importance to its production of sweet wines, in particular port. Thirdly, this is the first year of implementation of the new wine market policy: clearly, those involved in this sector have not been provided with sufficient information and this calls for flexibility in applying the new rules.

In view of the above:

- would it not be fair to consider the Portuguese applications (approximately 450 000 hectolitres) as eligible, and under what conditions would the Commission be prepared to do so?

- does the Commission not consider that this part of the new distillation rules should be reviewed in order to establish a fairer system of distribution among the wine producing Member States?

Joint answer to Written Questions E-0253/01 and P-0358/01 given by Mr Fischler on behalf of the Commission

(12 March 2001)

Distillation of wine to supply the market for potable alcohol was opened on 1 September 2000. The rules on the application of the measure lay down strict criteria covering the Commission's obligation to suspend this distillation measure (or to apply rates of reduction). In particular these concern an overrun, or the risk of an overrun, in budget resources or in the absorption capacity of the market for potable alcohol. In early December 2000, those conditions were met and the Commission accordingly suspended the measure until the beginning of the following wine-growing year.

The Commission confirms that most of the quantities available under the measure were taken up by contracts with producers and distillers in two Member States, but operators in two other Member States did submit contracts covering a large percentage of the table wine produced in their countries.

The Commission regrets that Portuguese wine and alcohol producers did not secure contracts under the measure, which was open to all Community producers. It is aware that the first year of application of any new measure is a difficult period for all operators.

Nonetheless, in response to the call for a review of the rules covering these distillation measures and a return to allocation of quantities for distillation by Member State, the Commission would point out that the abandonment of the former provisions was a key aspect of the reform of the common organisation of the market in wine (COM) undertaken in 1999. The aim was to bring the provisions governing the COM for wine more closely into line with the requirements of the market and the development of the Community, in particular in connection with the single market.

The Commission wishes to draw the Honourable Members' attention to the fact that where serious difficulties arise on the wine market in a Member State or a particular wine-growing region, the COM for wine has an instrument more specifically targeted to dealing with such situations, namely crisis distillation.

In view of the current situation in Portugal which the Honourable Members have described, on 15 February 2001 the Commission put a draft Regulation to the Management Committee for Wine for the opening of crisis distillation of 450 000 hl of wine in Portugal. The Committee delivered a favourable opinion on the draft Regulation and it has applied since 5 March 2001.