WRITTEN QUESTION P-0358/01 by Arlindo Cunha (PPE-DE) to the Commission. Wine distillation in Portugal.
Date: 2001-02-08
Institutions: European Parliament, Provisional data
Subjects: Portugal, aid system, common organisation of markets, distillation, viticulture, wine

C 235 E/164

Official Journal of the European Communities

EN

21.8.2001

In this context, it monitors the transposal of the afore-mentioned Directive by the competent authorities.
Accordingly the Commission addressed a letter of formal notice to the Belgian authorities in September
2000 plus a reasoned opinion adopted by Commission Decision of 21 December 2000.

The Belgian Government is responsible for ensuring the effective transposal of the Directive on its
territory.

As regards separate accounts for each activity (production, transport and distribution), this is essential to
the smooth running of the internal market. The Commission is therefore waiting for complete transposal,
notably the appointment of a transmission network operator and the introduction of, as under current
Community law, the unbundling of accounts and management.

(1) OJ L 27, 30.1.1997.

(2001/C 235 E/190)

WRITTEN QUESTION E-0253/01

by Ilda Figueiredo (GUE/NGL) to the Commission

(8 February 2001)

Subject: Funds allocated to wine growers

Thousands of Portuguese wine growers could be seriously disadvantaged by the fact that funds to support
wine distillation have practically run out because Spain and Italy submitted their applications more quickly
than Portugal.

While there is no denying that the Portuguese Ministry for Agriculture should have published the
guidelines for submission of applications for Community wine distillation aid more promptly, it seems
unfair that the Commission should distribute aid on a (cid:145)first-come-first-served(cid:146) basis and thereby discrimi-
nate against farmers in countries facing administrative difficulties.

The Commission:

1. Will it confirm that the available resources have been practically used up by Italy and Spain?

2. What measures will be taken to solve this problem, given the need to alleviate the resulting difficulties

faced by thousands of Portuguese wine growers?

(2001/C 235 E/191)

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.

21.8.2001

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Official Journal of the European Communities

C 235 E/165

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(cid:146)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:

(cid:129) 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?

(cid:129) 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-253/01 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(cid:146)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(cid:146) 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.