2000/809/EC: Council Decision of 19 December 2000 on the granting of exceptional national aid by the Government of the Italian Republic for the distillation of certain wine sector products
Date: 2000-12-19
Institutions: Council of the European Union
Subjects: Italy, State aid, application of EU law, distillation, wine

23.12.2000

EN

Official Journal of the European Communities

L 328/51

COUNCIL DECISION

of 19 December 2000

on the granting of exceptional national aid by the Government of the Italian Republic for the
distillation of certain wine sector products

(2000/809/EC)

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European
Community, and in particular Article 88(2), third subpara-
graph, thereof,

Having regard to the request made by the Government of the
Italian Republic on 6 December 2000,

Whereas:

(1)

(2)

(3)

(4)

Article 30 of Council Regulation (EC) No 1493/1999 of
17 May 1999 on the common organisation of
the
market in wine (1) allows a crisis distillation measure if
there is an exceptional case of wine market disturbance
caused by serious surpluses and/or problems of quality.

the aforementioned Regulation,

An imbalance on the wine market as a result of surplus
wine stocks prompted the Italian Government to request
the introduction of crisis distillation, pursuant to Article
30 of
for 120 000
hectolitres of wine obtained by fermentation of products
suitable for the production of ‘Asti’ and ‘Moscato d'Asti’;
the Management Committee for Wine gave a favourable
opinion on 28 November 2000.

The introduction of such crisis distillation involves the
payment of Community aid of EUR 1,914/% vol/hl
(ITL 3 706,02), which the Italian Government thinks
altogether insufficient either to avoid loss of income for
producers, given the low level of prices, or to prevent
greater market disturbance, taking into account the very
high production costs resulting inter alia from the
keeping of stocks which have to be refrigerated and
from the cost of measures for the restructuring of
production.

requesting

To deal with these difficulties, the Italian Government
is
exceptional
additional
to EUR 12,390/% vol/hl
(ITL 23 990,38) for application to the total quantity of

aid equivalent

authorisation

grant

to

(5)

(6)

wine to be covered by crisis distillation;
the overall
expenditure is estimated at around EUR 15,5 million
(approx. ITL 30 billion).

The aid in question, for a limited quantity of a high-
quality product such as ‘Asti’ and ‘Moscato d'Asti’,
is
justified on account of the current crisis on the wine
market, which could worsen further without a sufficient
level of intervention.

Exceptional circumstances therefore exist, making it
possible to consider such aid, by way of derogation and
to the extent strictly necessary to remedy the imbalance
which has arisen, to be compatible with the common
market on the terms specified in this Decision,

HAS ADOPTED THIS DECISION:

Article 1

Exceptional additional aid by the Italian Government
for
the distillation of 120 000 hectolitres of wine obtained by
fermentation of products suitable for the production of ‘Asti’
and ‘Moscato d'Asti’, amounting to EUR 12,390/% vol/hl
(ITL 23 990,38), shall be considered to be compatible with the
common market.

This Decision is addressed to the Italian Republic.

Article 2

Done at Brussels, 19 December 2000.

For the Council

The President

J. GLAVANY

(1) OJ L 179, 14.7.1999, p. 1. Regulation as amended by Commission

Regulation (EC) No 1622/2000 (OJ L 194, 31.7.2000, p. 1).