2002/193/EC: Council Decision of 28 February 2002 on the granting of exceptional national aid by the Government of the French Republic for the distillation of certain wine sector products
Date: 2002-02-28
Institutions: Council of the European Union
Subjects: France, State aid, distillation, viticulture

L 64/24

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 French Republic for the
distillation of certain wine sector products

(2002/193/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
French Republic on 21 January 2002,

Whereas:

(1)

(2)

(3)

(4)

(5)

(6)

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 2000/01 wine year in France brought a further
worsening of the market situation, with an increase in
table wine stocks and a fall
in the volumes sold
compared with the 1999/2000 wine year. On 31 July
2001 stocks of this type of wine stood at approximately
17,5 million hectolitres, which is an increase of 62 %
compared with the previous two years.

This situation on the French market is attributable to
more plentiful Community production over the last two
wine years, in spite of the drop in French production in
2000/01, and to lower consumption of ordinary table
wines; at the same time, local wines made from a single
cépages) are facing
grape variety (vins de pays de
competition from new wine-producing countries.

These are the circumstances responsible for the particu-
larly dire situation in the 2001/02 wine year, which has
led to a sharp fall in incomes and prices in the sector,
down 18 % in 2001 and 25 % in 2002.

Implementation of distillation arrangements under the
said Article 29 did not succeed in restoring the balance
of the French market, owing in particular to the rela-

(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).

tively low take-up rate at the proposed price, with wine
prices on the French market remaining higher than the
distillation price, despite the worsened situation and
owing to a high abatement
rate in the contracts
concluded at Community level.

This imbalance on the table wine market has led the
to request a crisis distillation
French Government
measure under Article 30 of the said Regulation for 4,5
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
per % vol, per hectolitre, which the French Government
considers quite insufficient to restore market balance.

To deal with the situation, the French 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 2,744 per % vol, per hectolitre, subject
to a
maximum cost of this national measure of EUR 39,84
million.

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,

(7)

(8)

(9)

HAS ADOPTED THIS DECISION:

Article 1

Exceptional aid by the French Government for the distillation
of 4 million hectolitres of table wine on French territory total-
ling not more than EUR 39,84 million, for the amount neces-
sary to bring the price of wine up to EUR 2,744 per % vol per
hectolitre in the context of the implementation of crisis distilla-
tion under Article 30 of Regulation (EC) No 1493/1999, shall
be considered compatible with the common market.

7.3.2002

EN

Official Journal of the European Communities

L 64/25

This Decision is addressed to the French Republic.

Article 2

Done at Brussels, 28 February 2002.

For the Council

The President

A. ACEBES PANIAGUA