2002/194/EC: Council Decision of 28 February 2002 on the granting of exceptional national aid by the Government of the Italian Republic for the distillation of certain wine sector products
Date: 2002-02-28
Institutions: Council of the European Union
Subjects: Italy, State aid, distillation, viticulture

L 64/26

EN

Official Journal of the European Communities

7.3.2002

COUNCIL DECISION

of 28 February 2002

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

(2002/194/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 31 January 2002,

Whereas:

(1)

(2)

(3)

(4)

(5)

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
facilitate the continuation of
and, as a consequence,
supplies of wine distillate.

Article 30 of the above Regulation allows a crisis distilla-
tion measure if there is an exceptional case of wine
market disturbance caused by serious surpluses and/or
problems of quality.

The 2001/02 wine year is characterised by a crisis situa-
tion which may be attributed to an imbalance between
supply and demand. This is due not so much to surplus
production as to abundant supply on the domestic
market because of the growing volume of stocks and of
imports of wines from third countries. In particular, the
Italian market has experienced considerable surpluses, in
particular regarding white table wines; thus the level of
table wine stocks has exceeded the 1999 level by 70 %.
Furthermore, the average price for this type of wine has
fallen by 23 % as compared with the 1998/99 wine year,
resulting in a significant reduction in producers' income.

Voluntary distillation of table wine intended to supply
the potable alcohol market provided for in Article 29 of
Regulation (EC) No 1493/1999 has not made it possible
to improve the situation on the Italian market, as the
contracts concluded have attained a level equivalent to
double the authorised volumes.

This imbalance on the table wine market has led the
Italian Government
to request a crisis distillation
measure under Article 30 of the said Regulation for 5
million hectolitres of table wine. Opening of that crisis
distillation measure involves a price to be paid to the
producer. The price adopted previously was EUR 1,914

(6)

(7)

per % vol, per hectolitre, which the Italian Government
considers insufficient to bring about genuine improve-
ment on the market.

To deal with the situation, the Italian Government is
planning, within the 4 million hectolitre quota approved
on 8 February 2002 by the Management Committee for
Wine and on a proposal from the Commission, to grant
exceptional national aid to producers who supply wine
for the distillation referred to in Article 30 of the said
Regulation, so as to bring the price paid to the producer
to a level not exceeding
for distillation purposes
EUR 2,12 per % vol per hectolitre,
to a
maximum cost of this national measure of EUR 8,27
million.

subject

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 aid by the Italian Government for the distillation of
4 million hectolitres of table wine on Italian territory totalling
not more than EUR 8,27 million, for the amount necessary to
bring the price of wine up to EUR 2,12 per % vol per hecto-
litre in the context of the implementation of crisis distillation
under Article 30 of Regulation (EC) No 1493/1999, shall be
considered compatible with the common market.

This Decision is addressed to the Italian Republic.

Article 2

Done at Brussels, 28 February 2002.

For the Council

The President

A. ACEBES PANIAGUA

(1) OJ L 179, 14.7.1999, p. 1. Regulation as last amended by Regula-

tion (EC) No 2585/2001 (OJ L 345, 29.12.2001, p. 10).