CELEX: 51983PC0149
Language: en
Date: 1983-03-22
Title: Proposal for a COUNCIL REGULATION (EEC) on storage aid for quality wines produced in specified regions (submitted to the Council by the Commission)

ARCHIVES HISTORIQUES
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DOCUMENTS "COM"
COM (83) 149
Vol. 1983/0043
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 ---pagebreak--- COMMISSION OF THE E U R O P E A N COMMUNITIES
                                                                 COM(83) 1 4 9 f i n a l
                                                                 B r u s s e l s , 2 2 March 1983
                                                 Proposal f o r a
                                      COUNCIL REGULATION (EEC)
         on s t o r a g e a i d f o r q u a l i t y wines produced i n s p e c i f i e d regions
                        (submitted t o the C o u n c i l by the Commission)
 COM(83) 149 f i n a l
 ---pagebreak---                                EXPLANATORY MEMORANDUM
  Total wine production from the 1982 harvest is estimated at 169 million hi, a
  figure exceeded only by 1979 (182 m hi) and 1973 (179 m hi).
  Thanks to the weather in 1982 the fruit crop - including the grape harvest -
 in non-Mediterranean Europe was exceptional. Wine production is accordingly
 well above average in France and has even reached record levels in Germany and
 Luxembourg. The situation is similar in Switzerland and Austria.
 Given that quality wines p.s.r. (produced in specified regions) account for
 much of the wine produced in the Community's northern wine-growing areas, the
 Community's production of this type of wine has overtaken the figure for 1979
 and has reached an all-time high (42 m hi). (See Annex).
 When compared with average production figures, the situation in Italy and
 Greece shows no major change, but quality wines p.s.r. produced in the other
 three wine-growing countries are disquietingly higher and far exceed the
 expected disposals.
There is accordingly a risk that the surplus may depress the market in table
wines, on which balance has not as yet been fully reached. This may take the
form of lower prices for quality wines p.s.r. adversely affecting the market
in table wine, or a quality wines p.s.r. being sold as table wine.
In the light of these exceptional circumstances the Commission is proposing,
under Article 57 of Regulation (EEC) No 337/79 on the common organization of
the market in wine, that the Council adopt specific measures designed to
encourage, by means of private storage aid, the carry-over of part of the 1982
production of quality wines p.s.r. to the following year.
 ---pagebreak---                                      - 2 -
It is proposed that a special system be introduced for the storage of quality
wines p.s.r. for six months, covering up to 15% of each wine-grower's
production.
However, in the light of the major difficulties experienced by wine-growers in
the Moselle, the limit is raised to 30% in the case of quality wines p.s.r.
produced in the "Moselle Luxembourgoise" and in the "Mosel-Saar-Ruwer" area.
It is also proposed that the Commission review the situation at the beginning
of the next wine growing year and, i f necessary, decide by the Management
Committee procedure to extend the contracts already concluded by three months.
The aid - applicable to all quality wines p.s.r. - would be that for the short
term storage of table wine produced in the Community's northern wine-growing
areas (A II), i.e. 0.0174 ECU/hl/day.
The Commission wishes to stress the exceptional nature of this measure.
It will follow the trend of the market in quality wines psr closely
in order to check that conditions return to normal and market balance
is re-established in the next marketing year. If this does not happen
the Commission may wish to propose more rigorous rules on the planting
of vines for the production of quality wine psr.
 ---pagebreak---                                        ANNEX
  The production of quality wines p.s.r. inrelation to total wine production
                   :   1976/80 : 1979/80 : 1980/81 : 1981/82 :       1982/83 :
                   : Total wine :
                   : production :                                 : ('OOOhl):
:     D            : 8.315     : 8.662       :   4.867 : 7.480    : 15.100 :
:     F            : 67.699    : 84.105      : 69.598  : 57-311   : 78.600 :
:     I            : 74.024    : 84-337      : 83-950  : 69.700   : 71.200 :
:     L            :        93 :        62   :      50 :       97 :      275 :
:     Gr           : 5-366          5-243    : 5-395   : 5.500    :   4.5OO :
:     Others       :         6 :         5   :       6 :        6 :       10 :
:      EUR 10      : 155-503      182.414    : 163.866 : 140.094  : 169.685  :
                   : of which quality wines p.s.r.                   ('000 hi):
:     D            :     7.961 :    8.485    :   4-723 : 7.339    :  12.084  :
:     F            :   15.492      18.779 : 14.819     : 13.940   :  20.600  :
:     I            :     8.435 : 9.880 : 8.984         : 7.129    :   8.5OO  :
:     L            :        55 :        40 :        48 :       95 :      200 :
:     Gr           :       283 :      278 :        243 :     300  :     400
:     Others       :                         :         :     -    :      -   :
:      EUR 10      :  32.226        37.462 : 28.817    : 28.803   :  41-784  :
                   : of which quality wines p.s.r. as a% of
                   : total wine production                            ( % ) :
:     D            :    95,7        98,0     :   97,0      98,1   :   80,0 :
:     F            :    22,9    :    22,3    :   21,2   :  24,3   :    26,2 :
:     I            :    11,4    :   11,7         10,7      10,2   :    11,9   :
:     L            :    59,1    :   64,5         96,0   :  97,9   :   72,7    :
:     Gr           :      5,3   :     5,3    :    4,5       5,4   :     8,9   :
:     Others       :            :                  -    :         :      -    :
:      EUR 10      :    20,7    :   20,5         17,6      20,6   :   24,6   :
 ---pagebreak---                                     Proposal for
                         COUNCIL REGULATION (EEC)
          on storage aid for quality wines produced in specified regions
  THE COUNCIL OF THE EUROPEAN COMMUNITIES,
  Having regard to the Treaty establishing the European Economic Community,
 Having regard to Council Regulation (EEC) no 337/79 of 5 February 1979 on the
 common organization of the market in wine (1), as last amended by Regulation
  (EEC) no 3082/82 (2), and in particular Article 57(2) thereof,
 Having regard to the proposal from the Commission,
 Whereas, pursuant to Article 57 of Regulation (EEC) no 337/79, intervention
 measures may be taken in respect of products other than table wines in order
 to support the market in table wines;
Whereas the abundance of the 1982 harvest in non-Mediterranean areas of the
Community, in particular as regards quality wines p.s.r. (produced in
specified regions), is adversely affecting prices for such wines generally and
may lead to such wines being marketed as table wines, thereby adding to the
difficulties on the market in table wines;
Whereas the measures taken to remedy the situation should not be limited to
table wines, which account for only a moderate proportion of the 1982
harvest; whereas, accordingly, producers should be encouraged, by means of
storage aid, to carry over part of their 1982 production of quality wine
p.s.r. to the following year;
(1) OJ No L 54, 5- 3-1979, p.l
(2) OJ No L 326, 23.11-1982, p.l
 ---pagebreak---                                        - 2 -
 Whereas wine-growers are experiencing major difficulties in certain regions;
 whereas the percentage of quality wine p.s.r. eligible for storage should be
 greater in such regions;
 Whereas the Commission should, before the period covered by this measure
 expires, review the situation on the market in table wines and quality wines
 p.s.r. and should be authorized to extend the period of validity of the
 contracts, should the need arise;
 Whereas, in order to ensure that this measure is used only for the purpose
 intended, quality wines p.s.r. should not be eligible, other than on
 qualitative grounds, for downgrading at the production stage under Article
 16(6) of Council Regulation (EEC) No 338/79 of 5 February 1979 laying down
 special provisions relating to quality wines produced in specified regions
 (1), as last amended by Regulation (EEC) No 2145/82 (2);
Whereas quality wines p.s.r. generally command higher prices than table
wines; whereas i t is not possible, however, to adjust the storage aid to the
product's real value; whereas storage aid should be fixed for all quality
wines p.s.r. at a standard rate, namely that adopted for short-term storage
aid for table wine for the Community's northern wine-growing areas,
HAS ADOPTED THIS REGULATION:
                                    Article 1
1.    Aid shall be granted to producers who conclude a contract with the
      competent intervention agency for the storage, for a period of six
      months, of quality wine p.s.r. or wine likely to be designated quality
      wine p.s.r. produced in the 1982/83 wine-growing year.
(1) OJ No L   54,  5- 3-1979, P-48
(2) OJ No L 227,   3- 3-1982, p.10
 ---pagebreak---                                                           ~ 3 -
       The contracts shall be concluded during a period to be specified and
       shall be for the storage of bulk wine. Producers may conclude such
       contracts only i f they give a written undertaking that, except on grounds
       of quality, they will not invoke the provisions of Article 16(6) of
       Regulation (EEC) No 338/79 on downgrading at the production stage in
       respect of quality wines p.s.r. covered by the contract.
 2.    Entitlement to the aid shall a r i s e                       at the end of the storage period
      and on condition that the wine stored has been recognized as quality wine
      p.s.r. If the wine has not been recognized as quality wine p.s.r. by the
      end of the period the producer may request that an amount of aid equal to
      that indicated in A r t i c l e             J, be advanced to him against his lodging
      security for 110$ of that amount in favour of the intervention agency.
      This security shall not be released, either in whole or in part, until
      proof is given that the wine stored has been recognized as quality wine
      p.s.r.
                                                     Article 2
The total quantity of wine covered by Article 1 in respect of which a producer
may conclude a storage contract shall not exceed 15$ of his total production
of that wine in 1982/83·
The limit specified in t h e f i r s t paragraph s h a l l , however, be 30% i n t h e case o f
producers of q u a l i t y wines p . s . r . i n t h e " M o s e l l e Luxembourgeoise" and "Mosel-
Saar-Ruwer" a r e a s .
                                                     Article 3
The aid referred t o in A r t i c l e           1 s h a l l be 0,0174 ECU/hl/day.
                                                     Article 4
Before the contracts referred to in Article 1 expire, the Commission shall
review the situation on the market in table wines and quality wines p . s . r .
In the light of that situation a decision may be taken, in accordance with the
procedure l a i d down i n A r t i c l e 67 o f R e g u l a t i o n (EEC) No 337/79, t o extend
the p e r i o d o f v a l i d i t y o f the c o n t r a c t s by three months.
 ---pagebreak---                                       - 4 -
                                    Article 5
 This Regulation shall enter into force on the third day following its
 publication in the Official Journal of the European Communities.
 This Regulation shall be binding in its e n t i r e t y and d i r e c t l y a p p l i c a b l e i n
a l l Member S t a t e s .
Done a t B r u s s e l s ,                                    For the C o u n c i l
 ---pagebreak---                                                                                                                         • •·•·•. *
     1
                        PINANCIAL              STATEMENT
                                                                                     0at   :
                                                                                         *     10 March 1983
           BUDGET HEADING :       16-19                                      '•·'   APPROPRIATIONS : 1983:    1 mio    ECU
         2.TITLS i Proposal for a Council Regulation on storage aid for quality wines
                       produced in soecified regions                                         ;
        3. LEGAL BASIS    :R eg  337/79, Art. 37
                                                                                                       :
        A. A INS OF PROJECT : To    promote the 'storage of quality wines in order to supp«rt thej
                                market in table wines
        5. FINANCIAL IMPLICATIONS                PERIOD OF 12 MONTHS CURRENT F     NCIAL YEAR FOLLOWING FINANCIAL YEAR
        5.0 EXPENDITURE                                                      i         )              < Kb- )
            - CHARGED TO THE EC BUDGET             12.9 mio ECU         0,6 mio ECU               12 ,3 mio ECU
               CRE FUNDS/INTERVENTIONS)
            - mmmmmmmw.
            - mm
       5.1 RECEIPTS
          . - OWN RESOURCES OF THE EC
               (LEVIES/CUSTOMS DUTIES)
            - NATIONAL
       5.0.1 ESTIMATED EXPENDITURE                            concerns one wine year only
       5.1.1 ESTIMATED RECEIPTS
       5.2 METHOD OF CALCULATION                        .    _
       Production of quality wine per in J9o2                                                        A1.786 mio hl
       Percentage that can be stored: 15$                                                             6'.27 mio h l
)§     Aid: 0..01?*f ECU/hl x 182 days.                                                               3.17 ECU/hl
)]     Theoretical maximum cost: b x e .                                                             19.9 mio ECU
)K     Estimated effectiveness of measure                                                            65%
)|     Total real cost: d x e                                                                        12.9 mio ECU
       The production of.regions in which storage of 30$ of production is authorize^
                                  1
       is marginal                              ;
      6.0 CAN THE PROJECT BE FINANCED FROM APPROPRIATIONS ENTERED IN THE RELEVANT CHAPTER OF THE CURRENT BUDGET ?
                                                                                                                  YES
     ,6.1 CAN THE PROJECT BE FINANCED BY TRANSFER-BETWEEN.CHAPTERS OF THE CURRENT BUDGET ?
      0.2 WILL A SUPPLEMENTARY BUDGET BE NECESSARY ? ,
                                                                                                                  NO
      6.3 WILL 'FUTURE BUDGET APPROPRIATIONS BE NECESSARY ?
                                                                                                                  YES
  I • OBSERVATIONS :'                                    i"'''/ ''                    :
                                                                                                                                   1
       1--          -     ••       •-      -                    .     . :r.^         - ... •                                1 •
  I 3i.nco no payments will be made until rix**month contracts terminate ord since
  H
  1 , thp --        -
                   first    -•
                             — — -— •
                             contracts      ——" .not
                                           will    —;— >.« signed until .        after adoption of this ReFi'lati on
  1I and of-the ruJ.e^~-for--                                         .
                                          its implementation (.to be drawn           • up bv the Commission)
                                                                                                           „.           V 11
 •1 almost a l l the expenditure               • w* i l l fall. under 19o%; The 19»3            _ - payments, assess.**!  i
  I at. 5% of'the total,              - w i l l be covered by . the existing   ..               ......
                                                                                             appropriation.              I   i