CELEX: 51973PC1938
Language: en
Date: 1973-11-13
Title: PROPOSAL FOR A REGULATION (EEC) OF THE COUNCIL fixing the activating prices for table wines for the period from 16 December 1973 to 15 December 1974 (submitted to the Council by the Commission)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (73) 1938
Vol. 1973/0341
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 ---pagebreak--- COMMISSION OF THE EUROPEAN COMMUNITIES
                                                  COM(73)1938 final
                                                  Brussels , 13 November 1973
                                PROPOSAL FOR A
            fixing the activating prices for table wines for the
              period from 16 December 1973 to 15 December 1974
                 ( submitted to the Council by the Commission)
   COM(73) 1938 final
 ---pagebreak---                                 EXPLANATORY MEMORANDUM
Article 3 ( l ) of Regulation (EEC ) No 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 fa.ctors :
( a) the state of the market and in particular the extent of price
      fluctuations 5
( 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) An examination of the market in the Community shows that the prises
      of all types of wine were above the activating price in the last
      wine year . Quotations for all types of wine have been falling off since
      the beginning of the 1973/74 wine year and in the case of wine type
      A II have already fallen below the activating price , with the result
      that storage contracts have been concluded .
( b ) The need to ensure price stability on the markets without causing
      strucural 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 .
 ---pagebreak---    ( c) The quality of the harvest seems good in all areas in the Community .
   ( d) The initial predictions of the forward estimates indicate a considerable
        increase in the quantities of wine available . Consequently there should
        be a general tendency for prices to approximate to the activating price .
C0FCLUSI01Ï
As a result of recent general price 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 1 $ for the period
from 16 December 1973 to 15 December 1974 ( Council Regulation No 135?/73
of 15 May 1973 - OJ Ho L 141 of 28 May, page 17 ).
It should be pointed out that whereas the gui/ e 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 limit the increase in the activating price in
comparison with that of the last wine year to an amount corresponding to the
increase in the guide price , so that the existing ratio between these prices
is maintained .
Wine of type R II is a special case .
 ---pagebreak---                                  - 3 -
Hitherto the price of this wine has been fixed at a lower level thaii that
of wine of type R I. The increased demand for wines of type R II , which is
emphasised by the increase in their prices which even exceeds those of wine
of type R I , seQms to justify a larger increase in the activating price for wine
of type R II than for that of the other types of wine . In the light of these
considerations an increase of 3 ^ in the price of wine of type R II seems
fair .
 ---pagebreak---                                proposal for a
                       REGULATION fEEC; OP TSE COU1TCIL
              fircing the activating prices for table wines for the
              period from 16 December 1973 to 15 December 1974
TH-3 CCUITCIL OF THE EUROPEAN COMMUITITIES ,
Having regard to the Treaty establishing the European Economic Co.ronunity;
Having regard to Council Regulation (EEC) No 8l6/70^"of" 23 April 1970 laying
down additional provisions for the common organization cf the market in wine ,
                                                2     . .       ...            ,
as last amended "by Regulation (EEC)lTo 2592/73 , and In particular Article 3 (
thereof ;
Having regard to the proposal from the Commission ;
Yfhereas an activating price must b . fixed annually for each type of wine
for which a guide price is fixed; whereas that activating price must be
fixed in the light of the factors set out in Article 3 ( 2 ) of Regulation
(ZZC) Ho 816/70 ,
Whereas the quality of the harvest can generally be described as good ;
Whereas there has been a general falling off in wine prices since the
previous wine year 1972/1973 ; whereas this has already led to "the conclusion
cf private storage contracts for one type of wine .
                                                            • • •j9 9 9
X0J Eo L 99» 5-5.1970, p. L
 20J Fo L 269, 26,9*1973. p. 1.
 ---pagebreak--- whereas the forward estimates show that , on the basis of supplies in the
previous wine year , there will be greater quantities available than there
were in that year }
Whereas the level of the activating price must take account of the factors
mentioned above j whereas it seems appropriate therefore to increase the
activating price for the period from 16 December 1973 to 15 December 1974
in comparison with the price for the previous wine year } whereas , because
of the market situation , a larger increase is justified for wines of
type R II }
Whereas the guide prices' for the period from 16 December 1973 to 15 December
1974 were fixed by Regulation (EEC) No 1352/73 of the Council of 15 Mai 1973^}
whereas Article 3 ( 3 ) of Regulation (EEC ) II0 816/70 provides that the
activating price shall be fixed at the same stage and shall be valid during
the same period as the guide price } whereas Regulation (EEC) No 945/70 of
the Council of 26 Mai 1970^ determines the types of table wine to which these
prices apply;
HAS ADOPTED THIS REGULATION       :
                                      Article 1                         1
The activating prices for the period from 16 December 1973 to 15 December 1974
shall be as follows }
1 . 1.36 units of account per degree/hi for table wine of type R I s .
2 . 1.35 units of account per degree/hi for table wine of type R II ,
3 . 21.8 units of account per hi for table wine of type R III ,
4. 1.32 units of account per degree/hi for table wine of type A I ,
5 . 28.3 units of account per hi for table wine of type A II ,
6 . 32.4 units of account per hi for table wine of type A III .
                                      Article 2
This Regulation shall enter into force on 16 December 1973 •
 This Regulation shall be binding in its entirety and directly applicable
 in all Member States .
                                                   For the Council
 Done at Brussels                                   The President
 30J No h 141, 28 . 5- 1973, p . 17 .
 40J No L 114, 27.5.1973 , p . 1 .