CELEX: 51978PC0588
Language: en
Date: 1978-11-09
Title: PROPOSAL FOR A COUNCIL REGULATION (EEC) FIXING THE ACTIVATING PRICES FOR TABLE WINES FOR THE PERIOD 16 DECEMBER 1978 TO 15 DECEIVER 1979 (Submitted by the Commission to the Council)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (78) 588
Vol. 1978/0225
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 ---pagebreak--- COMMISSION OF THE EUROPEAN COMMUNITIES
                                               COM(78)588   final
                                               Brussels , 9 November 1978
                I
                  PROPOSAL FOR A COUNCIL REGULATION (EEC )
               FIXING THE ACTIVATING PRICES FOR TABLE WINES FOR
                THE PERIOD 16 DECEMBER 1978 TO 15 DECEIVER 1979 .
                     ( Submitted "by the Commission to the Council )
                                           *>•
                             ..•r . ^           .
                                      . Λ.
                                                                       /
 COM<78 ) 588 final
 ---pagebreak---                         EXPLANATORY MEMORANDUM
Article 3(1 ) of Regulation ( EEC ) No 816 / 70 laying down additional pro­
visions for the common organization of the market in wine provides for
the fixing , each year before 16 December , of a threshold price activat­
ing the intervention system ( hereinafter called the " activating price ")
for each type of wine for which a guide price is fixed .
The 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 causing
      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 3 of Regulation No 24 on the progressive establishment of
      a common organization of the market in wine .
( a ) The upward trend in average prices observed at the beginning of the
      1977/ 78 wine year has continued .  Because the amount available has
      been below the average for recent years , prices for RI and RII tabl
      wines have remained at satisfactory levels throughout the wine year
      equal to or greater than the guide price .
      The possibility of concluding short-term contracts in respect of
      AI table wines , which had existed without a break since April 1974 ,
      was abolished in October 1977 as a result of this upswing .    The
      trend.did not continue , however , after the new guide prices entered
      into force on 16 December 1977 and , after some variations in the
      first few months of the year , short-term storage contracts for this
      type of wine were reintroduced in April 1978 ,    Such contract's can
      still be concluded at the present time .
      Prices for All and AIII table wines fell progressively at the
      beginning of the wine year , and storage contracts were opened in
      December for All wines and in February for AIII wines .    Throughout
      the rest of the wine year prices settled far below the activating
      price .
 ---pagebreak--- ( b ) The situation on the market in white table wines determines whether
      supplementary measures reserved for holders of long-term storage
      contracts ( guarantee of performance ) should be applied to these
      wines .
( a ) In its proposals concerning the fixing of prices for the 1978 / 79
      wine year , the Commission announced its intention of proposing to
      the Council that the activating price for intervention in respect
      of AI table wines should be limited if quotations confirmed the
      permanent weakness , and therefore imbalance , on the market in these
      wines .  Market trends prompt the Commission to carry out this in­
      tention in respect of AI table wines and other white wines ( All
      and AIII ) which have shown a similar market trend .
( b ) In the light of :
                   *
      - the foregoing remarks ;
      - crop forecasts which at present show that less wine will be avail­
        able than in the previous year and that quality will vary consi­
        derably , in some regions being below average ;
      - the desirability of introducing selectivity between different
        types of wine , in line with certain measures already adopted and
                                                                 0
        in accordance with the measures proposed for adjusting wine-
        growing potential to market needs ;
      - the 2% increase in the guide prices for all types of table wine
        during the period from 16 December 1978 to 15 December 1979
        ( Regulation No 1299/ 78 of 6 June 1978 - OJ No L 160 , 17.6.1978 ,
        p. 12 ).
      It is proposed that :
      - the activating price of red wines ( RI , RII and RIII ) 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 .
 ---pagebreak--- the activating price for white wines C A I , All and AIII ) should
be increased by only 0.5% , so that the activating price falls
from 93% to 91.5% of the guide price .
 ---pagebreak---                                  PROPOSAL POR A
                           COUNCIL REGULATION < EEC ) No
              fixing the activating prices for table wines for the
                   period 16 December 1978 to 15 December 1979
THE COUNCIL OF THE EUROPEAN COMMUNITIES ,
Having regard to the Treaty establishing the European Economic Community ,
Having regard to Council Regulation ( EEC ) No 816/ 70 of 28 April 1970 laying
down additional provisions for the common organization of the market in
     1      .    .       ....       ...           ..         2
wine , as last amended by Regulation ( EEC ) No 1861 / 78 , and in particular
                         Φ
Article 3(1 ) 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 , taking into consideration the factors
set out in Article 3(2 ) of Regulation ( EEC ) No 816 / 70 ;         •  »
Whereas the quality of the 1977 / 78 harvest can generally be regarded as
slightly below average ;
Whereas the current prices for RI and RII table wines are at least equal
to the activating prices ;      whereas , however , the prices for AI table wines
have been consistently lower than the activating prices for the last four
years , with the exception of a short period at the end of 1977 ;         whereas
in the most recent wine year the prices for All and AIII table wines
settled at a level well below their respective activating prices .
1 0J No L 99, 5.5.1970, p . 1
20J No L 215 , 4.8.1978, p . 1
 ---pagebreak---                                       - 2 -
Whereas , although the harvest was more plentiful than in the previous wine
year , the quantity available is , because of relatively low stocks , slightly
 lower than that recorded for the 1977/ 78 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 , without , however , en­
 couraging production ;
Whereas the different trends on the markets in red and white wines justify
the "introduction of selectivity in fixing activating prices ;            whereas , in
particular , the increase in the activating prices for white wines should
be less than that adopted for red wines and that adopted by the Council
for the guide prices ;
Whereas the guide price for the period 16 December 1978 to 15 December 1979
were fixed by Regulation ( EEC ) No 1299/ 78^; whereas Article 3(3) of
Regulation ( EEC ) No 816/ 70 provides that the activating price is to "be
fixed at the same stage and is to be valid during the same period as the
                                                         4
guide price ;   whereas Regulation ( EEC ) No 945 / 70      determined the types of
table wine to which these prices apply ,                                   -  ,
HAS ADOPTED THIS REGULATION :
                                   Article 1
The activating prices for table wines for the period 16 December 1978 to
15 December 1979 are hereby fixed as follows :
                      Type of wine         Activating pri ce
                          R I               1.93 u . a . / degree / hectolitre
                          R II              1.93 u.a ./ degree/ hectolitre
                          R III             30.00 u.a ./ hectolitre
                         A I                1.78 u.a . / degree/ hectolitre
                         A  II              39.43 u.a . / hectolitre
                         A III              45.01 u . a . / hectolitre
  0J No L 160 , 17.6.1978 , p.ll
40J No L 114 , 27.5.1970, p . 1
 ---pagebreak---                                   - 3 -
                               Article 2
This Regulation shall enter into force on 16 December 1978 .
This Regulation shall be binding in its entirety and directly applicable
in all Member States .
Done at Brussels ,                               For the Council
                                                 The President
                    -                                        /