CELEX: 51974PC1948
Language: en
Date: 1974-11-22
Title: Proposal for a COUNCIL REGULATION (EEC) fixing the activating prices for table wines for the period from 16 December 1974 to 15 December 1975 (submitted to the Council by the Commission)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (74) 1948
Vol. 1974/0313
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 ---pagebreak--- COMMISSION OF THE EUROPEAN COMMUNITIES
                                                    COM(74) 1948 final
                                                    Brussels , 22 November 1974
                                   Proposal for a
                              COUNCIL REGULATION ( EEC )
                   fixing the activating prices for table wines
                      for the period from 16 December 1974 to
                                  to 15 December 1975
                   ( submitted to the Council by the Commission)
  COM(74 ) 1948 final
 ---pagebreak---                                        EXPLANATORY MEMQ3MD0M
1 . Article 3 ( l ) of Regulation ( EEC ) 11° 8l6 laying down additional provisions
    for the common organization of the market in wine provides that " the Council
    shall fix annually before 16 December a threshold price activating the inter­
    vention system ( hereinafter called the "activating price") for each type of
    wine for which a guide price is fixed ."
    The activating price is fixed in the light of the following factors :
    ( a) the state of the market &nd in particular the extent of price fluctuations ;
    ( b ) the need to ensure price stability on the markets without causing structure.],
          surpluses to build up in the Community;
    ( c ) the quality of the harvest ;
    ( d ) the information contained in the forward estimates provided for in
          Article 3 of Regulation Uo 24 on the progressive establishment of a
          common organization of the market in wine .
2 . ( a) An examination of the market in the Community shows that in certain
          quotation places prices were below the activating price for the preceding
          wine-growing year and the beginning of the wine-growing year 1974-75 •
          Massive intervention measures , including distillation , were necessary
          to avoid a total collapse of prices .
    ( b ) The need to ensure price stability on the markets without causing
          structural surpluses to build up in the Community complicates the decision
          to be taken as a fair income must be guaranteed for the producers without
          there being at the same time an incentive to increase production .
          The underlying consideration was that in view of recent price increases
          a suitable increase in the activating price seemed justified in order to
          guarantee a fair income for the producers without causing structural
          surpluses to build up . An excessive increase could cause problems in the
          future , especially in view of the quantities available at present .
                                                                         • • •j a o «
 ---pagebreak---                                         - 2 -
     ( c) The quality of the harvest seema in general to be average on the whole
           but insufficient in certain regions of the Community .
     ( d ) The initial predictions of the forward estimates indicate a certain
           supplementary increase in the quantities of wine available . Consequently
           there should be a general tendency for prices to remain around the
           activating price .
 COITCLUSIOÎT
 As a result of recent general production cost increases it seems .justified to
 provide for an increase in the activating-price for all types of wine , particularly
 as the guide price for all table wines was increased by more than 16 $ for the
 period from 16 December 1974 "to 15 December 1975 ( Council Regulation Ho 2496/74
 of 2.10.1974 - 0J JT O L 263 of 3.10.1974, page l ).
 It should be pointed out that whereas the guide price is a target price the
 activating price is more closely linked to the short-term market situation , and
 in particular to the quantities available .
 Hence it seems justified to provide for an increase in the activating by an
 amount less than the increase agreed upon for the guide price
 Wine of type R II is a special case . Hitherto the price of this wine has been
 fixed at a lower level than that of wine of type R I. The increased demand for
 wines , of type R II , which is emphasised by the increase in their price3 which
'even exceeds those of wine of type R I , seems to justify a larger increase in
 the activating price for wine of type R II than for that of the other, types of
 wine . Consequently it is proposed to fix the activating price at 93 of the
 guide price .
 ---pagebreak---                                 Proposal for a
                       COUNCIL REGULATION ( EEC )
                   fixing the activating prices for table wines
                   for the period from I 6 December 1974 to 15
                   December I975 »
THE COUNCIL OP THE EUROPEAN COMMUNITIES ,
Having regard to the Treaty establishing the European Economic Community :
Having regard to Council Regulation (EEC ) NO 8I6/7O of 28 April 1970 laying
down additional provisions for the common organization of the market in
      T                                                  , 9
wine , as last aciended by Regulation (EEC ) N° 1532/74 1 and in particular
Article 3 ( i ). thereof ;
Having regard to the proposal from the Commission ;
Whereas an activating price must be fixed annually for each type of wine for
which a guide price is fixed accound being taken of the factors set out in Arti­
cle 3 ( 2 ) of Regulation (EEC ) NO 8I6/7O ;
Whereas the quality of the 1974/1975 harvest can generally be described as
average ;
Whereas there has been a slight increase in average wine prices since the
197 3/1974 wine year ; whereas , hoitfever , for all other wine types with the excep­
tion of type R II the prices recorded in at least one trading centre are below
the activating prices ;
( 1 ) O.J. No L 99 of 5 May 1970 , p. I
( 2 ) O.J. No L 166 of 21 June 1974 , p. I.
 ---pagebreak---                                        - 2 -
                                     in
Whereas on the basis of supplies thd previous wine year the forward estimate
shows that the same quantity will "be available as in the previous year ;
Whereas the level of the activating prices must take account of the factors
mentioned above ; whereas it seems appropriate therefore to increase the acti­
vating price for the period from 16 December 1974 to 15 December 1975 in com­
parison with the previous wine year , without ,, however , offering an inducement
to production by too large an increase ; whereas in addition , the market situa­
tion justifies a greater increase for wines of type R II ;
Whereas the guide prices for the period from I 6 December 1974 to 15 December
1975 were fixed by Regulation (EEC ) No 2496/74^; and- whereas Article 3 ( 3) of
Regulation (EEC ) H O 8I6/7O provided that the activating price shall be fixed
at the same stage and shall be valid during the same period as the guide price ;
and whereas Regulation (EEC) No 945/70^ determines the types of table wine to
which thse prices apply ;                                           .
HAS ADOPTED THIS REGULATION j
                                    Article I
The activating prices for the period from 16 December 1974 "to 15 December
1975 are hereby fixed as follows         !' ■
1.     1,58 u * a * per degree/hi for table wine of type R I ,
2.     I f 54 u.a . per degree/hi for table wine of type R II ,
3.    24,72 u.a . per hi for table wine of type R III ,
4.     1,49 u« a . per degree/hi for table wine of type A I ,
5«    32,95 u.a . per hi for table wine       of type A II ,
6.    37 1 62 u.a . per hi for table wine of type A III .
                                    Article 2
This Regulation shall enter into foroe on 16 December I974 »                 ■'
This Regulation shall be binding in its entirety and directly applicable in
all Member States .
Done at Brussels ,                                             For the Council ,
                                                                 The President
( 3 ) O.J. No L 268 of 3 October 1974 , P-I
(4 ) O.J. No L 114 of 27 May 1970 , p. I.