Commission Regulation (EC) No 25/2001 of 5 January 2001 opening crisis distillation as provided for in Article 30 of Regulation (EC) No 1493/1999 for table wines in France
Date: 2001-01-05
Institutions: European Commission
Subjects: application of EU law, common organisation of markets, vinification, viticulture

6.1.2001

EN

Official Journal of the European Communities

L 3/11

COMMISSION REGULATION (EC) No 25/2001

of 5 January 2001

opening crisis distillation as provided for in Article 30 of Regulation (EC) No 1493/1999 for table
wines in France

THE COMMISSION OF THE EUROPEAN COMMUNITIES,

by about 10 to 17 % over
the current wine year
compared with the same period in the previous year.

Having regard to the Treaty establishing the European
Community,

Having regard to Council Regulation (EC) No 1493/1999 of 17
May 1999 on the common organisation of the market in
wine (1), as last amended by Regulation (EC) No 2826/2000 (2),
and in particular Articles 30 and 33 thereof,

Whereas:

(1)

(2)

(3)

(4)

(5)

Article 30 of Regulation (EC) No 1493/1999 provides
for the possibility of opening crisis distillation in the
event of exceptional market disturbance caused by major
surpluses. Such measures may be limited to certain cate-
gories of wine and/or certain areas of production and
may apply to quality wines psr at the request of the
Member State.

The French Government has requested that crisis distilla-
tion be triggered for table wines produced in France.

Production of table wine in France was 22,6 million hl
in 1997 and 21,1 million hl in 1998. In 1999 the figure
was 25,2 million hl and in 2000 it was 23,02 million hl.

Over that period, table wine consumption in France
remained relatively stable in the 1996/97 and 1997/98
wine years at around 18,3 million hl, but fell in 1998/
99 to 17,3 million hl, which also appears to be the level
of consumption for 1999/2000. By contrast, exports
rose slightly between 1997 and 1999, but only exports
to other Member States. Provisional figures for 2000
point to a fall

in exports.

Stocks of table wine were 12,853 million hl in 1997
and 12,086 million hl
in 1998. They fell to 10,85
million hl in 1999. In 2000, they have risen sharply to
14,07 million hl. The fluctuation in stocks obviously
varies widely from one department to the next, but it is
very pronounced in departments with a large stock, with
increases of between 47 and 88 %. The growth in stocks
has had a negative impact on prices, which have fallen

(6)

(7)

(8)

(9)

Since the conditions laid down in Article 30(5) of Regu-
lation (EC) No 1493/1999 are satisfied, crisis distillation
covering a maximum of 800 000 hl of
table wine
should be triggered. That volume should make it
possible to reduce stocks of table wine to an acceptable
level. The measure applies for a limited period with a
view to maximum effectiveness. No ceiling should be set
on the quantity that
individual producers can have
distilled because stocks may vary substantially from one
producer to another and depend on sales to a greater
extent than on the individual producer's annual output.

The mechanism to be introduced is provided for in
Commission Regulation (EC) No 1623/2000 of 25 July
2000 laying down detailed rules for implementing Regu-
lation (EC) No 1493/1999 on the common organisation
of the market in wine with regard to market mecha-
nisms (3), as amended by Regulation (EC) No 2786/
2000 (4). As well as the Articles of this Regulation which
refer to the distillation measures provided for in Article
30 of Regulation (EC) No 1493/1999, other provisions
of Regulation (EC) No 1623/2000 apply, in particular
those concerning the delivery of alcohol to intervention
agencies and the payment of an advance.

The buying-in price to be paid by the distiller to the
producer should provide a solution to the problems
while allowing producers to take advantage of the poss-
ibility afforded by this measure. That price should not,
however, be such that it adversely affects the application
of distillation as provided for in Article 29 of Regulation
(EC) No 1493/1999.

The product of crisis distillation must be raw alcohol or
neutral alcohol for compulsory delivery to the interven-
tion agency in order to avoid disturbing the market for
potable alcohol, which is supplied largely by distillation
under Article 29 of Regulation (EC) No 1493/1999.

(10)

The measures provided for in this Regulation are in
accordance with the opinion of
the Management
Committee for Wine,

(1) OJ L 179, 14.7.1999, p. 1.
(2) OJ L 328, 23.12.2000, p. 2.

(3) OJ L 194, 31.7.2000, p. 45.
(4) OJ L 323, 20.12.2000, p. 4.

L 3/12

EN

Official Journal of the European Communities

6.1.2001

HAS ADOPTED THIS REGULATION:

Article 1

Crisis distillation as provided for in Article 30 of Regulation
(EC) No 1493/1999 is opened for a maximum of 800 000 hl
of table wines in France.

Article 2

As well as the provisions of Regulation (EC) No 1623/2000
which refer to Article 30 of Regulation (EC) No 1493/1999,
the following provisions of Regulation (EC) No 1623/2000
shall also apply to the measure provided for herein:

— Article 62(5) with respect to the payment by the interven-
tion agency of the price referred to in Article 6(2) of this
Regulation,

— Articles 66 and 67 with respect to the advance referred to

in Article 6(2) of this Regulation.

Article 3

Producers may conclude contracts as provided for in Article 65
of Regulation (EC) No 1623/2000 from 9 January 2001 to 15
February 2001. Such contracts shall entail the lodging of a
security equal to EUR 5 per hl. Such contracts may not be
transferred.

Article 4

1.
The Member State shall determine the rate of reduction to
be applied to the abovementioned contracts where the overall
quantity covered by contracts presented exceeds that laid down
in Article 1.

2.
The Member State shall adopt the administrative provi-
sions needed to approve the abovementioned contracts by 10
March 2001, shall specify the rate of reduction applied and the
quantity of wine accepted per contract and shall stipulate that
the producer can cancel the contract where the quantity to be
distilled is reduced. The Member State shall notify the Commis-

sion before 20 March 2001 of the quantities of such wine
covered by contracts approved.

3.
The wine shall be delivered to the distilleries by 30 June
2001 at the latest. The alcohol obtained shall be delivered to
the intervention agency by 30 November 2001 at the latest.

4.
Securities shall be released in proportion to the quantities
delivered where the producer provides proof of delivery to the
distillery.

The security shall be forfeit where no delivery is made

5.
within the time limit laid down.

6.
The Member State may limit the number of contracts that
individual producers can conclude under the distillation opera-
tion in question.

Article 5

The minimum buying-in price for wine delivered for distillation
under this Regulation shall be EUR 1,914 per % vol per hl.

Article 6

1.
Distillers shall deliver the product obtained from distilla-
tion to the intervention agency. That product shall be of an
alcoholic strength of at least 92 % vol.

2.
The price to be paid to the distiller by the intervention
agency for raw alcohol delivered shall be EUR 2,2812 per %
vol per hectolitre. The distiller may receive an advance on that
amount in the form of aid amounting to EUR 1,1222 per %
vol per hectolitre. The aid shall in that case be deducted from
the price actually paid.

Article 7

This Regulation shall enter
into force on the third day
following its publication in the Official Journal of the European
Communities.

It shall apply from 9 January 2001.

This Regulation shall be binding in its entirety and directly applicable in all Member States.

Done at Brussels, 5 January 2001.

For the Commission

Franz FISCHLER

Member of the Commission