CELEX: 51978PC0720
Language: en
Date: 1978-12-14
Title: Proposal for a COUNCIL REGULATION (EEC) amending Regulation (EEC) No 816/70 laying down additional provisions for the common organization of the market in wine (submitted to the Council by the Commission)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (78) 720
Vol. 1978/0270
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 ---pagebreak---                        COMMISSION OF THE EUROPEAN COMMUNITIES
                                                                COM(78)720 final.
                                                                Brussels . 14 . December 1978
       · * ·. ν   ,
    λ.          :   · .
  /      ·
f
                                               Proposal for a
                                          COUNCIL REGULATION ( EEC )
                         amending Regulation ( EEC) No 816/70 laying down additional
                         provisions for the common organization of the market in wine
                                 ( submitted to the Council by the Commission)
  CQK(78) 720 final .
 ---pagebreak---                                EXPLANATORY MEMORANDUM
In paragraph 7(a ) of the 1979-1985 Action Programme for the progressive
establishment of balance on the market in wine sent to the Council by the
                            (1)
Commission , it is stated        that the Commission is ready to " examine in
greater detail with the Member States most concerned the possibility of
aids for the use of natural musts in the production of grape juice and
British Wine ",
During Council discussions on the package of measures proposed by the
Commission for the progressive establishment of balance on the market in w.ine ,
some Member States insisted that proposals be put forward in respect of all
the measures for increasing consumption included in the Action Programme and
particularly in respect of aid for must intended for use other than wine
making .    This is why the Commission , after studying the technical problems
with the Member States directly concerned , proposes supplementing
Regulation ( EEC ) No 816 / 70 by incorporating a legal basis for granting aid
for grape musts and concentrated grape musts intended for the manufacture
of fruit juices and British and Irish wines , respectively .     If users of must
are to be able to draw up a proper commercial and industrial strategy which
guarantees a steady outlet for vine products , the aid system should be
permanent and the amount of the aid should be published and therefore fixed
before the start of the wine year .      The Commission 's proposal accordingly
provides for a permanent aid system and for the Management Committee
procedure for fixing the amounts annually in accordance with the criteria
given in the enacting terms .
  1 ) C0M(78 ) 260 final - Volume 1 ,
 ---pagebreak---                                    Proposal for a
                        COUNCIL REGULATION ( EEC )
            amending Regulation ( EEC ) No 816 / 70 laying down additional
           provisions for the common organization of the market in wine
THE COUNCIL OF THE EUROPEAN COMMUNITIES ,
Having regard to the Treaty establishing the European Economic Community,
and in particular Article 43 thereof ,
Having regard to the proposal from the Commission ,
                                                               ( 15
Having regard to the Opinion of the European Parliament             ,
Whereas the experience acquited in the application of Council Regulation
(EEC ) No 816/70 ( 2), last amended by Regulation (EEC ) NO I86I/78 ( 3) ,
makes it clear that in order to achieve a better balance between production
and utilization in the wine-growing sector it is necessary to increase
utilization of wine products ; whereas intervention further back than
table wine production , .by encouraging the use of must for purposes other
than wine making , appears to be justified ;
Whereas at present some substantial outlets could be made available by the
manufacture of grape juice and the manufacture in the United Kingdom and
in Ireland of certain products falling under heading No 22.07 of the Common
Customs Tariff ; whereas the use of Community grape must in these sectors is
restricted in the first instance by competition from certain fruit juices
whose prices on the world market are substantially lower than the prices
of Community grape must , and in the second instance by competition from
musts from countries which traditionally supply the United Kingdom and
Ireland ;
 (1)
       0J No­
  ( 2 ) OJ No L 99 , 5.5.1970 , P. 1
 ( 3 ) OJ No L 215 , 4.8.1978 , P. 1                                  4 /. * 1 # # «
 ---pagebreak--- Whereas in order to provide a steady outlet for must intended for the uses
referred to above , an aid system is necessary for must and concentrated
must intended for such use ; whereas , in respect of grape juice, the
amount of the aid should be such that the price of grape juice is compara-
 /
ble to that of competing fruit juices ; whereas in respect of the manufacture
in the United Kingdom and in Ireland of certain products falling under
heading No 22.07 of the Common Customs Tariff the aid should be set at a
level which enables the price of musts intended for such manufacture to
find a level comparable with the market prices for musts in the countries
which traditionally supply the manufacturers of the products in question ;
HAS ADOPTED THIS REGULATION
 ---pagebreak---                                      - 3 -
                                    Article 1
The following Article is hereby inserted in Regulation ( EEC ) No' 816 / 70 :
" Arti cle 6 f "
  1,    A system of aid is hereby set up for the purchase of grape musts and
        concentrated grape musts produced within the Community and used for :
        - manufacture of grape juice ,
        - manufacture in the United Kingdom and in Ireland of products
          falling under heading No 22,07 of the Common Customs Tariff in
          respect of which , by virtue of the first subparagraph of Article
          30(1 ), the use of a composite name including the word " wine" may­
          be allowed by the Member States ,.
  2,    The level of the aid must make it possible :
        - in the case of manufacture of the products referred to in the first
          indent of paragraph 1 , to achieve a cost price for such products
          comparable    to that of competing fruit juices ,
        - in the case of manufacture of the products referred to in the second
          indent of paragraph 1 , to achieve a price level for musts used for .
          such manufacture comparable to     the market prices for grape musts
          and concentrated grape musts in the countries which traditionally
          supply manufacturers of the product in question ,
  3,    The amount of the aid shall be fixed annually at the latest on .
        31 August for the following wine growing year in accordance with
                      *
        the procedure provided for in Article 7 of Regulation No 24 . Detailed
        rules for the application .of this Article shall be adopted by the -
        same procedure ."
 ---pagebreak---                                  Article 2
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 entirety and directly applicable
in all Member States ,
Done at Brussels ,                                      For the Council
                                                        The President
 ---pagebreak---                      FINANCIAL                  STATEMENT
                                                                                         I DATS 1 30 November 1978
    1 . BUDCb-T LINS COUCLU'.'KS j       6919                                APPROPRIATIONS :         1979 Proposal 0.1 m
    2 . ACTION i
                      Draft Council Regulation amending Regulation 816/70 laying down
  additional provisions for the common organization of the market in wine .
   3. legal basis i          Article 43 of the Treaty
   4. objlcti vss s       Measures to come into force on 31 August 1979 to increase outlets for
   Community grape musts , namely aid for grape musts and concentrated grape musts used
j for manufacture of grape juice and British and Irish wines respectively.
   5 . FINANCIAL CCI/3EQ'JLK CE                     FOR THE MARKETING YEAR     CURRENT FINANCIAL YEAR   FCLLCWINC FINANCIAL YEAR I
   5.0                                                                       .       ( 78 )           •        L 79 )            I
        – CMARGKD TO THB KC BUDGET
          (      lg/i mt:-«Vrjrri o:;a )
                                                        5.15 m EUA                                            5.15 m EUA
        – CKAHGHD TO NATIONAL AIOTNI3TH .
        -C1IARCED TO OT/fKR NATIONAL CROUPS
  5.1 RECEI PT3
        -o^i Rjnouacis OF nrs no
        ■ ( LEVIES/C.JST0K3 IXJTIEJ )
        -NATI ON AL
                                                              80                          81
                                                    YEAS                     YEAR                       YEAR
  5.0.1 PLURI A.VNUAL FATTillN OF EXPENDITURE
  5.1.1 PLURI ANNUAL PATTEXN OF RECEIPTS                  5.15 m EUA                  5.15 m EUA
  5.2 KhTtlOD OF CALCULATION
  1.      For grape juice :
          quantity of must : 350 000 hi at 10° with aid of 0.5 u.a./°hl - I .75 m u.a .
                                                                                                                   = 1.9 m EUA
!2. ForBritish and Irish wines :
 6.0
          quantity of concentrated musts 85 000 hi , concentration coefficient 3.5
              representing 297 500 hi of must
     • 297 500 at 10 with aid of 1.0 u.a./°hl <=                                      3 m u.a . = 3.25 m EUA .
 6.1 FINANCING r O jjIBUJ BY TilANitf'ER ELT.-.'-S!! CHAPrEKS OF CUfliiUNT BUDGi-T ?                              YES/**
 6.2 JiEOIiSITY i'Od A SUFPLE^.'TARY BUDGET ?
       Appropriations to be entered in future budgets                                                             YES/ift
 COiOlENTS 1
                  Tlie amount of tlie aid is forecast on tlie basis of the difference between
 the reference prices and the offer prices in non-member countries .                                         The aid for
 concentrated musts takes the cost of concentration into account .