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
Date: 1993-03-23
Institutions: European Commission
Subjects: aid per hectare, cessation of farming, grubbing premium, market stabilisation, viticulture

COMMISSION  OF  THE  EUROPEAN  COMMUNITIES 

COM(93)85  final 

Brussels, 22  March  1993 

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 

- 2 -

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. 

-  3 -

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. 

- 4 -

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, 

- 5 -

- . 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. 

-c-

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 

} 

F I N A N C I AL  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 

1993 

1994 

Period of  12 months 

Current  Financial Year 

Following  Financial  Year 

5.0  EXPENDITURE 

- CHARGED TO THE EC BUDGET 

-  XXXXXXXX/INTERVENTION) 

p.m. 

p.m. 

p.m. 

- xxxxxxxxxxxxxxxxxxxxxxx 

1955 

1996 

1997 

1998 

5.0.1  ESTIMATED  EXPENDITURE 

p.m. 

p.m. 

p.m. 

5.1.1  xxxxxxxxxxxxxxxxx 

5.2 METHOD OF CALCULATION: 

6.0 CAN THE PROJECT BE FINANCED FROM APPROPRIATIONS  ENTERED IN THE RELEVANT  CHAPTER OF THE CURRENT BUDGET? 

6.1  CAN THE PROJECT  BE FINANCED  BY TRANSFER  BETWEEN CHAPTERS OF THE CURRENT  BUDGET? 

YES 

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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