CELEX: 51980PC0273
Language: en
Date: 1980-05-14
Title: PROPOSAL FOR A COUNCIL REGULATION (EEC) AMENDING REGULATION (EEC) No 565/80 LAYING DOWN GENERAL RULES ON DISTILLATION OPERATIONS FOR TABLE WINES FOR WHICH THE DELIVERY CONTRACT MUST BE APPROVED BEFORE 15 APRIL 1980 (presented by the Commission to the Council)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (80) 273
Vol. 1980/0103
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 ---pagebreak--- COMMISSION OF THE EUROPEAN COMMUNITIES
                                                   COM(80)273 final
                                                   Brussels . 14th May 1980
                 PROPOSAL FOR A COUNCIL REGULATION .( EEC )
             AMENDING REGULATION ( EEC ) No 565 / 80 LAYING DOWN
       GENERAL RULES      ON DISTILLATION OPERATIONS FOR TABLE WINES
                     FOR WHICH THE DELIVERY CONTRACT MUST
                         BE APPROVED BEFORE 15 APRIL 1980
               (presented by- the Commission to the Council )
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COM ( 80 ) 273 final
 ---pagebreak---                                   EXPLANATORY MEMORANDUM
           To deal with the serious crisis on the wine market resulting from the
      very big 1979 harvest the Council adopted a measure for the distillation of
      table wine pursuant to Article 15 of the basic wine Regulation . The
     general rules relating to this measure ( 1 ) laid down time limits for the
     conclusion of contracts and for the completion of distillation operations .
     In addition , the quantity distilled by each producer could not exceed
      10$ of his 1979 table harvest , or 20% in the case of small-scale producers .
           The aim of this operation was to withdraw 8 million hi of table wine
     from the market but the contracts concluded before the deadline of
     1 April 1980 relate to only *1.85 million hi .    This situation arises both
     from the short periods allowed for the conclusion of contracts and for the
     distillation and from the level of the ^individual ceiling .
                                                                   a
           There has thus been no market improvement and for this reason the
     Commission is proposing that the Council initiate a second instalment of
     the distillation operation ,, keeping the same prices and r'ates of aid . In
     this way it will be possible to conclude new contracts up to 15 June 1980
     and the end of the distillation period will be postponed from 31 May to 31
     July 1980 .
           The principle of limiting the quantity distilled by each producer has
     been retained and the 'percentage fixed ( 15$ ) should enable the original
     objective of 8 million hi to be attained .
           The financial statement accompanying the Commission proposal ( 2 )
     therefore remains valid and unchanged .
( 1 ) Regulation ( EEC ) No 564 /80 , 0J No L 62 of 7.3.1980 , p.1
( 2 ) C0M(80 ) 36- final of 1 February 1980 .
 ---pagebreak---                             •           .   PROPOSAL FOR
                                 COUNCIL REGULATION ( EEC )
                  amending Regulation ( EEC ) No 561 / 80 laying down
            general rules on distillation operations for table wines for
                      which the delivery contract must be approved
                                    ■ before 15 April 1980 [
THE COUNCIL OF THE EUROPEAN COMMUNITIES ,                           .  '  s
Having regard to the Treaty establishing the European Economic Community ,
Having regard to .         Council" Regulation ( EEC ) No 33? /79 of 5 February 1979 on
                         .      ...           ...        1
the common organization of the market in wine              , as last amended by
                                  2
Regulation ( EEC )x No 159 /80        , and in particular Article 15 ( 1 ) thereof ,
Having regard to the proposal from the Commission ,
Whereas Articles 1 , 2 , and 7 of Regulation (EEC ) No 561/80^           limited the
time for the conclusion of delivery contracts , their approval by the
                    v
intervention agencies and the completion of distillation operations , together
with the volume of wine which could be distilled by each producer ; whereas ,
because of these limitations , the delivery contraqts concluded relate to a
quantity well below that needed to stabilize the market ; whereas there should
therefore be a second instalment of the distillation operation ;
HAS ADOPTED THIS REGULATION :             r
( 1 ) 0J No L 51 , 5.3.1979 , p. 1
( 2 ) 0J No L 57 , 29.2.1980 , p. 32
( 3 ) OJ No L 62 , 7.3.1980 , P. 1
 ---pagebreak---                                          - 2 -
                                      Article 1                          -
Article 1 of Regulation ( EEC ) No 561</80 is amended to read as follows :
" 1 . Producers wishing to distil part of their harvest of table wines pursuant
       to Article 15 of Regulation (EEC ) No 337 /79 * shall conclude contracts for
       the delivery of table wines with an approved distiller and shall submit
       them to the intervention agency :                    ■
      - for £ first instalment , before 1 April 1980
      - for a second instalment , before 15 June 1980
 2 . For the purposes of this Regulation , the quantity of^table wines distilled
      by any one producer as part of the first instalment may not be less than
      10 hectolitres and may not exceed the following percentages of the
      quantity of table wine , expressed in terms of wine , musts or grapes ,
                                                                                  f
      stated in the producer 's harvest declaration for the 1979 /80 wine-growing
      year :                                   ■
      a ) as regards red and rose table wines :
        - 20% for the first 150 hectolitres declared ,
        - 10% for the remainder of the declared production ,
   ' b ) as regards white table wines :
        - 20$ for the first 150 hectolitres declared ,                        ^
        - 10$ for the remainder of the declared production                          .
 3 . The quantity of table wines distilled by any one producer as . part of the
      second instalment may not exceed 15$ of the quantity of table wine ,
      expresed in terms of wine , musts or grapes , stated in the producer 's
      harvest declaration for the 1979 /80 wine-growing year .
            The quantity of red and rose table wines which may be distilled may
      be replaced wholly or in part by a corresponding quantity of white table
      wines ."
 ---pagebreak---                                            - 3 -
                             •       ,   Article 2
Article 2 of Regulation ( EEC ) No 564 /80 is amended to read as follows :
 1 . The delivery contracts shall not be valid unless approved/ before '15 April 1980
      for the first instalment and before 30 June 1980 for the second
                _                                                                      \
      instalment , by the intervention agency of the Member State in which the
      wine happens to be when the contract is concluded . These contracts shall
      cover   :                                                        '
      a ) the purchase by the distiller of the quantity of table wine entered in •
          the contract .
                    . /            .                                        x
      b ) the obligation for the distiller to process the wine into a product
          with an alcholic strength by volume of 86$ or more , or into a product
          with an alchoholic strength by volume of 85$ or less and to pay for
                           \
          this wine at least , the price referred to in Article U.
  2 . Where distillation takes place in a Member State other than that in which
      the contract was approved , the intervention agency which approved the
      contract shall forward a copy of it to the intervention agency of the
      first Member State ."      '                      -      '                 •
                      .    ,                                    i
                                         Article 3
The date " 31 May , 1980 " in Article 7 of Regulation ( EEC ) No 564 /80 is replaced \
by " 31 July 1980 ".
                                         Article 4
This Regulation shall enter into force on the day of 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   '
                                                 r - ΓΓΤΓΓΓ
                                                          ! V- ^Τ :)•Γ Γ-r-i
 ---pagebreak---                                                                           of the fir|t
                          FIWAJSiCBAL            STAT E 1^3
                                                                          final of | m*b i 30.1.1980
                                                        unmi *wi HMgaaycryl/rfiraKv^^w^TTQ»^^
                                        , . . _ .. . ... ..          ,    7                   .            Provisional budget
        1« BUDGET LINE CONCERNS!) t 691 2 ■ dl St 1 I Lat 1 00 Of Wine                 '       . CREDITS   annrnnriatinnc
                                                                                                         i appropriations
       -2* ACTION T         Proposal - for a Council Regulation laying down^the- general rules on
                        . operations to distil table' wine for which the disti llation. contract
                            must be approved .                       1 ■                                      '•
                                                                                                                                           . »
       3 . LEOAL BASIS I
                              Article 15 of Regulation No 337/ 79                                           .
                                                                                                                                     _J
      4 . OBJECTIVES I
                              The 1979 wine harvest was exceptionally abundant.' The traditional |
                              market support measures should therefore be . supplemented by an                                               j
                              exceptional di^ti llation - provided for under Article 15 of the                                               p
                              Basic Regulation .                                                                                             $
      5. FJNAÎfCIAL CONSEQUENCE                      miOD OP 12 " MOTHS          CUIUffifiT PIHAJIGXAL 2EAR      ! FOLLOWNO FINANCIAL YEAH
   5 5.0 EXPENDITURE
            -CJLA/IGED TO THE EC BUDGET
                                                                                         ί–1                    μ        ί . ) · .
              (REFUNFFI/LNTENVENTIONS )
   P       –CUAFLCED TO NATIONAL AEXINISTH.
   |       -CHAnCH) TO OTHER NATIONAL CROUPS          89-0 m ECU                    Ö9-.Q m ECU
                                                      or                             or
  E 5.1 BÂ-sifts
  -        -C-.il RESOURCES or THE EC                 82 «6 m EUA                   82*8 m EUA'
  '          ( LEVI ES/CU5T0>3 DUTIES )
           -NATIONAL
                                                                             I
                                                   YEAH                         TEAâ                            TEÂH -
     5.0.1 PLURIANNUAL PATTEHH OP EXPETOITUHB            82*8 m EUA
 jj 5.2 KETHOD OF CALCULATION                                  . •            1
 Assumptions : - 3m hi ,. 60% wtyite wine and 40% red wine'                                                 ^
 |                         -- averagei    aid: white wine 1.08 ECU/ % /hi; red wine 1.22 ECU/ % /.hi
                              average alcoholic strength : red wine 11° ; white wine 10 *
   Total cost : " O .96 ECU/ % /hi x' 10 x 4.8 m. hi = 46.08 m E CU                                                 /
                            1.22 ECU / % / hl Jt 11 x 3.2 m hl s 42.94 m ECU •
I                                         0         ' '•                    "B9.02m ECU v>• ■                         '                    |
                                                                                                                                           |
I 6.0 FINANCING roSSIBLB WITH CREDITS                               CHAPTER OF CURRENT BUDGETi                                             ^
I 6.1 FaWAjUpIKO POSSXBLB BY TflW^SFERB^f£aTwUPV^SOFWf^NTBU3»Er7~^^^^                                                      ^>oVil0
I 6.2 NECESSITE F0a^SUg)MÎË5SlTARÏ BUDGET 7
|^.3 CRËDjîâtPrÔ BE
   C0HKENT3 •
    This is an emergency measure for which no appropriations were provided . Its
    effectiveness is connected" not only with relieving the market but also with the .
    psychological effect on operators . Rapid'measures vii 11 reduce the' need for
    storage expenditure and should limit subsequent expenditure . v .
  ^ V The Commission will propose the' neoessazy Vmdget oover at "the timo its new "■
           proposals for the I98O budget .