CELEX: 51980PC0738
Language: en
Date: 1980-11-19
Title: Proposal for a COUNCIL REGULATION (EEC) fixing activating prices for table wines for the period 16 December 1980 to 15 December 1981 (submitted to the Council by the Commission)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (80) 738
Vol. 1980/0232
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 ---pagebreak--- COMMISSION OF THE EUROPEAN COMMUNITIES
                                                     COM(80 ) 738 final
                                                     Brussels . 19 November 1980
                                     «&•     y.
                                                 j
                                  a
                                  'i      •.    /
                                         -:>y
                               Proposal for a
                          COUNCIL REGULATION ( EEC )
            fixing activating prices for table wines for the
               period 16 December 1980 to 15 December 1981
                ( submitted to the Council by the Commission )
C0M(80 ) 738 final
 ---pagebreak---                          EXPLANATORY MEMORANDUM
Article 3 ( l ) of Regulation (EEC ) No 337/ 79 on the common organization
of the market in wine provides for the fixing , "before 16 December
each year , of a threshold price activating the intervention system ,
hereinafter called the "activating price", for each type of wine for
which a guide price is fixed .
Th,e activating price is to "be fixed in the light of the following
factors :
a) the state of the market and in particular the extent of price
    fluctuations ;
b) the need to ensure price stability on the markets without caiusing
    structural 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 5 of the said Regulation .
        • . V                       .     *    •    '                *
With the relatively high volume of production in 1979/ 80 » combined .. .
with average stocks , availabilities at the "beginning of the marketing
year were the highest for a number of years .      Prices for red wines ,
which had 'already declined at the end of the previous wine year , thus
remained stagnant at a level below the activating price virtually
throughout the marketing year . From August however , quotations for
R I red wines rose slightly , almost reaching the activating price ,
while those for R II wines virtually remained the same .      However , an
improvement cannot be ruled out in the case of R II wines if the
alcoholic strength of the new harvest is insufficient in several
regions of the Community and demand rises as a result .
 ---pagebreak--- Prices for A I white wines , which at the "beginning 01 the wine year
were already "below the activating price , "began to fall in November
and reached a very low level , where they were to remain virtually
throughout the wine year , even though all available intervention     „
measures had "been implemented .
Prices for A II ta"ble wines fell towards the middle of the wine year
"but rose again above the activating price as the wine year ended .
             *
Quotations for R III and A III table wines remained excellent , "being
above the guide price throughout the wine year .
                                                                  1
                                                                           »
a) For the 1979/80 wine year the Council introduced selective fixing
    of activating prices , so as to take account of the differing
    market trends between red ajnd white wines ;, this meant smaller
    increases in the activating prices for white wines than for red wines
    In the course of the last wine year , prices for white A II and A III
    table wines recovered to a satisfactory level .    On the other hand ,
    white A I table wines remained well below the activating price ,
    thus confirming the disparity between the supply and demand for
    such wines .   There is therefore justification for continuing
    with, a selective activating price for white A I table wine in 1980 /81
b ) In the light of :
    - the foregoing remarks ,
      the very large quantities which will be available ( judging from
    stock levels and the size of the harvest ) and the quality ,
    which will be average , but with generally low alcoholic strength ,
 ---pagebreak---                                   - 3 -
   – the desirability of continuing with selective activating prices for
   the various types of wine , in line with the .measures adopted for
   adjusting wine-growing potential to market needs ,
   – the increase , "by an average of 5*5ft in "the guide prices for all
   types of table wine during the period from 16 December 1980 to 15
   December I98I ( Regulation (EEC ) No 1591/80 of 24 June I98O -
   OJ No L 160,' 26*6.1980 , p. 11 ); ■ .
it is proposed that :
   – the activating price for red wines (R I , R II g.nd R III ) and for
   A II and A III white wines, should be increased by the same
   percentage as the guide prices , so that, the activating price
   remains at the same, relative level as last year i.e. , 93^ of the
   guide price for red wines and 91 * 2^ for A II and A III' white
   wines ,
   – the activating price^ for A I- white wines should be increased by     ,
   4.8# so that the activating price will "be 90 • 4^ of the guide price .
 ---pagebreak---                                Proposal for a
                          COUNCIL REGULATION ( EEC )
             fixing activating prices for table wines for the
             period 16 December 1980 "to 15 December 1981
THE COUNCIL OP 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
                                                         1
1979 on the common organization 01 the market m wine , as last
amended "by Regulation (EEC) No1990/8^, and in particular Article
3 ( l ) thereof ,
Having regard to the proposal from the Commission ,
V/hereas an activating price must he fixed annually for each type of
wine for which a guide price is fixed , taking into consideration
the factors set out in Article 3 ( 2 ) of Regulation ( EEC ) No 377/79 ?
Whereas the quality of the harvest for the 1980/81 wine year can
generally "be regarded as "below average ;
   OJ No L 54 , 5.3.I979 , P. 1
2 OJ No L195,29.7.1980, p. 6
 ---pagebreak---                                    - 2 -
 Whereas the current prices for R I table wines are very close to
 the activating price ; whereas those for R II table vines , although
 10$ "below the activating price , should rise appreciably in view of
the relative shortage , in this year 's production , of wines of high
alcoholic strength ; whereas , however , the prices for A 1 table wines
have remained well below the activating price throughout the
                                                             ι ι
marketing year , once again confirming the fundamental weakness
of this sector of production owing to an imbalance between supply
and demand ; whereas the prices for R III , A II and A III table
wines axe above their respective activating prices as a
consequence of the limited availability of 'such wines ;
Whereas , as a result of the fax more plentiful stocks at the beginning      '
of the wine year than in the previous year , the quantity available
is considerably greater than in an average wine year ;
Whereas the level of the activating prices must take account of the
                \
factors mentioned above ; . whereas the activating prices fixed for
the previous wine year should therefore be increased , but not ,   .
however , so as to stimulate production ;
Whereas , when the activating prices for the 1979/80 wine year were
fixed , selectivity was introduced in the fixing of prices in order
to take account of the differing market trends between red and
white wines ; whereas during the past wine year these price trends
have been confirmed ; whereas it would therefore again appear, to
be desirable for the activating prices for A I white wines to be increased
                  . , .    ..   .. for
by an amount which is smaller than' red wines ; and than the increase decided
upon by the Council for the guide price ;
                                             J
 ---pagebreak--- Whereas the guide prices for the period 16 December I98O to 15 December
 1981 were fixed "by Regulation (EEC ) No 159l/80^; whereas Article 3 ( 3 )
of Regulation (EEC ) No 337/79 provides that the activating price is
to be fixed at the same stage and is to be valid during the same
period as the guide price ; whereas Regulation (EEC ) No 340/79^ *
determined the types of table wine to which these prices apply .
                                                                         *
HAS ADOPTED THIS REGULATION :
                  »    .                                         1
                                Article 1
The activating prices for table wines for the period 16 December 1980
to 15 December I98I are hereby fixed as follows :
               Type of wine j       Activating price
                    RI             2.49 ECU/# vôl/hl
                    R II           2.49 ECUfi-, vol/hl
                    R III         38.87 ECU/hl
                    AI             2.27 ECU/f vol/hl
                    A II          50.79 ECU/hl
                    A III         58.00 ECU/hl-
                                Article 2
This Regulation shall enter into force on 16 December I98O .
This Regulation shall be binding in its entirety and directly
applicable in all Member States .
Done at Brussels ,                                     For the
                                                       For the Council
                                                               Cou /
                                                       The President
\ OJ No L 160 , 26.6.1980 , p. 11
4 OJ No L 54 , 5.3.1979 , P. 60
 ---pagebreak---                   FINANCIAL           STATEMENT                                Date :   22.10.80 .
             T HEADING :   Chapter 69
                                                                               APPROPRIATIONS : 350 million EUA
1 . UUOGE                                                                     for 1980           '          '
2. TITLE :          Draft Council Regulation fixing the activating prices for
           •        table wines for the period 16 December I98O to 15 December 1981
5. LEGAL BASIS : Council Regulation No 337/79 -
A. AIMS Of PROJECT :                                                           _
                          To fix activating prices for table wines
                                                                  CURRENT FINANCIAL *EAR   FOLLOWING FINANCIAL YEAR
                                          PERIOD Of 12 MONTHS
5 . FINANCIAL IMPLICATIONS
5.0 EXPENDITURE
       - CHARGED TO THE EC BUDGET
         ( REFUNDS / INTERVENTIONS )
       • NATIONAL ADMINISTRATION                   1                                                 (1)
       - OTHER
5.1 RECEIPTS
       - OWN RESOURCES OF THE EC
         ( LEVIES / CUSTOMS DUTIES )
       - NATIONAL
                                                1981                .19$?..
5,0.1 ESTIMATED EXPENDITURE                       ( 1)                 (1
 5.7.1 ESTIMATED RECEIPTS
 5.2 METHOD OF CALCULATION
  à.o ou>Jcaiaxi(BoiacD£XDma*DCscx
  6.1 W^XAUCJWAAAOCABC.KDUXSDEiX3aXXtXSBSXaSX3B<CKB£SXQG3T6S)Ê$TÂCFÂCX                                          srs&®s
   >.2                                                                                                          XEES2KH
  6 3 WILL FUTURE BUDGET APPROPRIATIONS BE NECESSARY .                                         1               1 YESÛGB
  OBSERVATIONS : ( l ) The financial implications are indirect only. The effect of
                      the measiire was taken into account in the estimate of the appropriations
                      required for the I98I budget . There is an appropriation of
                      466 million EUA in Chapter 69 of the 1981 budget .