Commission Regulation (EC) No 786/2001 of 24 April 2001 opening crisis distillation as provided for in Article 30 of Council Regulation (EC) No 1493/1999 for table wines in Spain
Date: 2001-04-24
Institutions: European Commission
Subjects: Spain, distillation, table wine, wine

25.4.2001

EN

Official Journal of the European Communities

L 115/3

COMMISSION REGULATION (EC) No 786/2001

of 24 April 2001

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

THE COMMISSION OF THE EUROPEAN COMMUNITIES,

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 amended by Regulation (EC) No 2826/2000 (2), and
in particular Articles 30 and 33 thereof,

Whereas:

(1)

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.

(2)

The Spanish Goverment has requested that crisis distilla-
tion be opened for table wines produced on its territory.

(3) Wine production in Spain was 33,2 million hectolitres
in 1997/98 and 31,2 million hectolitres in 1998/99. It
rose to 33,5 million hectolitres in 1999/2000 and to
41,1 million hectolitres in 2000/01, an increase of
22,8 % over the previous wine year. This represents a
33 % increase over the average for the previous ten wine
years.

(4)

(5)

(6)

Stocks at the start of the wine year were 20,3 million
hectolitres in 1997/98 and 21 million hectolitres in
1998/99. Stocks increased to 23,7 million hectolitres in
1999/2000 and, again, by around 16 % to 27,5 million
hectolitres in 2000/01. This is 26 % above the average
for the last ten wine years.

The considerable increases in production and stocks
have had a very negative impact on prices, which have
fallen during the current wine year compared with the
same period last year by around 26 % for white wines
and around 37 % for red wines.

Since the conditions laid down in Article 30(5) of Regu-
lation (EC) No 1493/1999 are satisfied, crisis distillation
covering a maximum of 2,6 million hectolitres of table
wine should be opened. That volume should make it
possible to curtail the reduction in prices and restore a
reasonable situation on the market for table wine. The

measure applies for a limited period with a view to
maximum effectiveness. Without prejudice to Article 79
of Regulation (EC) No 1493/1999, 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 more on sales than on
the individual producer's annual output.

The mechanism to be introduced is that provided for by
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 mechan-
isms (3), as last amended by Regulation (EC) No 545/
2001 (4). In addition to the Articles of that Regulation
referring 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.

The price to be paid by distillers to producers should be
set at a level that permits the problems faced to be
solved by allowing producers to take advantage of this
measure. That price should not, however, be such that it
adversely affects
the distillation
the application of
measure provided for by 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.

(7)

(8)

(9)

(10)

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

HAS ADOPTED THIS REGULATION:

Article 1

Crisis distillation as provided for by Article 30 of Regulation
(EC) No 1493/1999 is opened for a maximum of 2,6 million
hectolitres of table wine in Spain.

(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 81, 21.3.2001, p. 21.

L 115/4

EN

Official Journal of the European Communities

25.4.2001

Article 2

In addition to the provisions of Regulation (EC) No 1623/2000
referring 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 in this Regulation:

— 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; however, payment may be made only from 16
October 2001.

Article 3

Producers may conclude contracts as provided for in Article 65
of Regulation (EC) No 1623/2000 from 27 April 2001 to
1 June 2001. Contracts shall be accompanied by proof that a
security equal
to EUR 5 pr hectolitre has been lodged.
Contracts may not be transferred.

Article 4

1.
The Member State shall determine the rate of reduction to
be applied to the above 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 necessary to approve the above contracts by 15 June
2001, shall specify the rate of reduction applied and the
quantity of wine accepted per contract and shall stipulate that
the producer may cancel the contract where the quantity to be
distilled is reduced. The Member State shall notify the Commis-
sion before 22 June 2001 of the quantities of such wine
covered by approved contracts.

The wine shall be delivered to the distilleries by 31

3.
August 2001.

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.

The Member State may limit the number of contracts that
the distillation

6.
individual producers may conclude under
measure.

Article 5

The minimum price paid for wine delivered for distillation
under this Regulation shall be EUR 1,723 per % vol. per
hectolitre.

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. It must be delivered to
the intervention agency between 16 October 2001 and 31
December 2001.

2.
The price to be paid to the distiller by the intervention
agency for raw alcohol delivered shall be EUR 2,090 per % vol.
per hectolitre.

Article 7

This Regulation shall enter into force on the day of its publica-
tion in the Official Journal of the European Communities.

It shall apply from 27 April 2001.

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

Done at Brussels, 24 April 2001.

For the Commission

Franz FISCHLER

Member of the Commission