2001/428/EC: Council Decision of 22 May 2001 on the granting of exceptional national aid by the Portuguese Government for the distillation of certain wine sector products
Date: 2001-05-22
Institutions: Council of the European Union
Subjects: Portugal, State aid, application of EU law, distillation, viticulture, wine

L 153/28

EN

Official Journal of the European Communities

8.6.2001

II

(Acts whose publication is not obligatory)

COUNCIL

COUNCIL DECISION

of 22 May 2001

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

(2001/428/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,

(5)

Having regard to the request made by the Portuguese Govern-
ment on 6 April 2001,

Whereas:

(1)

(2)

Article 29 of Council Regulation (EC) No 1493/1999 of
17 May 1999 on the common organisation of
the
market in wine (1) allows Community support for the
distillation of wines in order to support the wine market
and, as a consequence,
facilitate the continuation of
supplies of wine distillate.

(6)

Article 30 of Regulation (EC) No 1493/1999 allows a
crisis distillation measure if there is an exceptional case
of wine market disturbance caused by serious surpluses
and/or problems of quality.

(3) With the publication of Commission Regulation (EC) No
2774/2000 (2),
the notification of new contracts for
voluntary distillation (Article 29) was
suspended,
rendering the quantities reported by Portugal for the first
fortnight of December
that market
measure.

ineligible

for

resulting from non-application of voluntary distillation
in Portugal.

The minimum price to be paid to producers by the
distiller for crisis distillation (EUR 1,914 per % vol per
hectolitre) is lower than that set for voluntary distillation
resulting in
(EUR 2,488 per % vol per hectolitre),
substantial producer
around
loss, put
income
EUR 3,1 million. In addition, the minimum price set for
this crisis distillation may not prove sufficiently attrac-
tive, which may significantly reduce take-up of
this
market measure, thereby jeopardising the purposes for
which it was intended.

at

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, on the
particular understanding that, on those conditions,
it
should be ensured that producers taking up crisis distil-
lation receive income equivalent
to that which they
would have obtained from the voluntary distillation to
which they did not have access and that the granting of
exceptional national aid to Portuguese wine producers
should be authorised, only within the limits of the price
difference between the two types of distillation,

(4)

Following a request
from Portugal of 19 December
2000, Commission Regulation (EC) No 442/2001 (3)
opened crisis distillation under Article 30 of Regulation
(EC) No 1493/1999 for a quantity of 450 000 hectoli-
tres of table wine, the aim being to keep to a minimum
the impact on the stability of the wine market of the
disposal of some pockets of surplus white table wine

(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).

(2) OJ L 321, 19.12.2000, p. 40.
(3) OJ L 63, 3.3.2001, p. 52.

HAS ADOPTED THIS DECISION

Article 1

Exceptional aid by the Portuguese Government for the distilla-
tion of 450 000 hectolitres of wine to a maximum value of
EUR 0,574 per % vol per hectolitre (PTE 115,077), to the
extent strictly necessary to remedy the imbalance which has
arisen on Portuguese territory, shall be considered to be
compatible with the common market.

8.6.2001

EN

Official Journal of the European Communities

L 153/29

This Decision is addressed to the Portuguese Republic.

Article 2

Done at Brussels, 22 May 2001.

For the Council

The President

M. WINBERG