CELEX: 51981PC0467
Language: en
Date: 1981-07-31
Title: Proposal for a COUNCIL REGULATION (EEC) amending Regulation (EEC) n° 1144/81 laying down general rules on the distillation of table wines as provided for in Article 15 of Regulation (EEC) n° 337/79 (submitted to the Council by the Commission)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (81) 467
Vol. 1981/0143
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 ---pagebreak--- COMMISSION OF THE EUROPEAN COMMUNITIES
                                                   COM(81)467 final
                                         Brussels , 31 july 1981
                                Proposal for a
                           COUNCIL REGULATION (EEC)
     amending Regulation (EEC) n° 1144/81 laying down general rules
          on the distillation of table wines as provided for in
                Article 15 of Regulation (EEC ) n° 337/79
                 ( submitted to the Council "by the Commission)
C0M(8l ) 467 final
 ---pagebreak---                                                       Cow\
                             EXPLANATORY MEMORANDUM
The all-time record wine harvest of 1979 and the very substantial 1980 harvest
which was again in excess of requirements have , for more than 18 months
now , resulted in serious and lasting difficulties on the table wine .
market . All the intervention measures have been implemented and the
Council was obliged , in early 1980 and in April 1981 , to take decisions
on exceptional distillation (Article 15 of the basic Regulation ,
No 337 / 79 ). The quantities available were in substantially greater sur­
plus in Italy than in France and quotations for Italian wines were
substantially below those for French wines . The crisis on the Italian
market resulted in massive consignments of Italian production to the
French market at prices which the producers in Languedoc-Roussillon felt
were insufficient to maintain their incomes and were responsible for the
 difficulties in disposing of their own wines . The exceptional distil­
 lation decided upon in Council Regulation (EEC ) No 1144/ 81 ( 1 ) was not
 enough to absorb .this phenomen completely . It was to cover a volume of
 6 million hi , but the result was not reached ; in France , the volume of
 wines covered by distillation contracts was only 600,000 hi since the buying-
  price       for wine was lower than average quotations in that country ; in
 Italy , contracts covered 4 to 4.5 million hi as the volume was restrict­
 ed by the 15% limit on individual production laid down in the Regulation .
                                            exceeding
 The quantities available in Italy, still           the normal quantities for
 the time of year, and the coming harvest, which appears likely to be early,
 have prevented Italian rates from rising significantly . * The pressure on
 the French market has therefore not diminished and the reaction by
 French producers has become firmer .
 Further steps are required so that the results anticipated by the excep­
 tional distillation decision (6 million hi ) may be reached . Better
 balance on the Community table wine market can be attained if the Italian
 market were to improve . That market could be relieved by^sending a
  further 2 million hi for distillation .    For this purpose , the Commission
 proposes increasing the percentage of production which may be made
  ( 1 ) 0J No L 120 ,   1.5.1981 , p. 1
 ---pagebreak---                                    - 2 -
subject to exceptional distillation measures , increasing it from 15 to
20% . This increase would make it possible to raise the quantity distilled
in Italy , where buying in prices of the wine subject to distillation is
attractive compared with market rates , while it would have practically
no effect in France where the rates exceed that price . The higher rates
likely to result from the measure should not only relieve the present
very tense situation but also have a beneficial influence on the outset
of the next wine year by making better rates possible from the start .
 ---pagebreak---                                     Proposal for  %
                      COUNCIL REGULATION (EEC ) NO
                                 of        »'
       amending Regulation (EEC ) No 1144/81 laying down general rules
             on the distillation of table wines as provided for in
                   Article 15 of Regulation (EEC ) No 337 / 79
                                                             /
THE COUNCIL OF THE EUROPEAN COMMUNITIES ,
Having regard to the Treaty establishing the European Economic Community ,
                                                                          J
Having regard to Council Regulation (EEC ) No 337 / 79 of 5 February 1979
on the common organization of the market in wine ( 1 ) as last amended by
Regulation (EEC ) No 3456/80 ( 2) and in particular Article 15(1 ) thereof ,
Having regard to the proposal from the Commission ,
Whereas Council Regulation (EEC ) No 1144/ 81 (3 ) made provision for
exceptional distillation of table wine with the object of alleviating
the serious crisis on the market ; whereas the volume which could be
distilled was limited to 15% of table wine production by each producer
during the 1980/81 wine year ; whereas this restriction has prevented
 complete attainment of the object in question , quantities subject to
distillation contracts having remained below the anticipated level ;
whereas , in order to relieve the market to an extent which will enable ,
 rates to recover , particularly in Community regions in the largest
quantities of table wine available , the percentage of production which
may be distilled should be increased from 15 to 20% ; whereas it is
therefore necessary to reopen the time limit- for submission of applica­
tions for approval of delivery contracts and to adapt certain other
dates fixed in Regulation (EEC ) No 1144/81 ;
 ( 1 ) 0J No L 54 ,     5 . 3.1979 , p . 1
 (2 ) OJ No L 360 ,    31.12.1980 , p . 18
 ( 3 ) OJ No L 120 _    1 . 5.1981 , p . 1
 ---pagebreak---                                    Article 1
                 •                 –––––––
Regulation (EEC ) 1144 / 81 is hereby amended as follows :
1 . The date 25 June 1981 in Article 1(1 ) is replaced by 15 October 1981 .
2 . The figure 15% in Article 1(2 ) is replaced by 20% .
3 . The date 25 July 1981 in Article 2(1 ) is replaced by. 15 November
    1981 .
4 . The date 25 Jrne 1981 in Article 3(1 ) is replaced by 15 October 1981 .
5 . The date 25 July 1981 in Article 3(3 ) is replaced by 15 November
    1981 .
6 . The date 15 November 1981 in Article 8 is replaced by 15 January
     1982 .
                                    Article 2
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 Commission
 ---pagebreak---                     FINANCIAL            STATEMENT
                                                                                   Date :
                                                                                            28 July 1981
  1 . SUOGIT HEADING : 1 981 • 691 ?                                              APPROPRIATIONS I 1981 ,
                                                                                                    287.14 m ECU        (1 )
 2. TI LE : p roposa i f or a Council Regulation amending Regulation ( EEC ) Mo 1144 / 31
      lavino rlnun npnpral rul.p <? nn the rli st i L lat i on of table wines as nrovideH for ir>
      Article 15 of R 337 / 79 .
 J. LEGAL BASIS :          Article 15 of Regulation No 337/ 79
  I. AIMS OF PROJECT
      Relieving tpe serious crisis on the wine market by stepping up the exceptional
      distillation measures - provided for in Regulation 1144 / 81
 5 . FINANCIAL IMPLICATIONS                  PERIOD OF 12 MONTHS    CURRENT FINANCIAL YEAR    FOLLOWING FINANCIAL YEAR
 5.0 EXPENDITURE
                                                                           t   81, ?      :         i         2
       - CHARGED TO THE EC BUDGET            18 mi l lion ECU 18 mi llion ECU
          ( REFUNDS / INTERVENTIONS )
          OWN RESOURCES OF THE EC
          ( LEVIES / CUSTOMS DUTIES )
       - NATIONAL
 5.0.1 ESTIMATED EXPENDITURE
 5.1.1 ESTIMATED RECEIPTS
                                                          only   covers    one  ι îarketing ye ; ir
 5.2 METHOD OF CALCULATION
                                                  see   annex
      CAN THE PROJECT BE FINANCED FROM APPROPR IAT IONS ENTERED IN THE RELEVANT CHAPTER OF   THE CURRENT BUDGET O
6.0
6.1   CAN THE PROJECT BE FINANCED BY TRANSFER BETWEEN CHAPTERS OF THE CURRENT BUOGET· ?
                                                                                                       (2)
                                                                                                                  VES/jtø 1
6.2
      WILL A SUPPLEMENTARY BUDGET BE NECESSARY                      ,                                            X&&N0
                                      ·'   *
63    WILL 'FUTURE BUDGET APPROPRIATIONS BE NECESSARY ?
                                                                                                                 Χξ£/Ν0 I
OBSERVATION " :
( 1 ) initial appropriations .             The appropriations in the draft amending budget no 1
        amount to 348 million ECU .
( 2 ) The necessary appropriations would be made available from those in chapter 60
        ( cereals ) or 64 ( sugar ) for example .
 ---pagebreak--- Annex :  Method of calculation
1 .) The exceptional distillation measure decided upon by the Counil on
      24 April 1981 (Regulation No 1144/ 81 ) was to cover 6 million hi at
      15 ECU/ hl , or 90 million ECU .
2 .)  The quantities actually covered by distillation contracts amounted
      to between 4.9 and 5.4 million hi , or a maximum of 81 million ECU .
3 .)  Increasing the percentage of production which could be distilled
      from 15 to 20% should result in distillation of a further 1.8 mil­
      lion hi , or a maximum of 7.2 million hi representing 108 million
      ECU .
4 .) Additional expenditure caused by this proposal should therefore
      amount to 108-90 = 18 million ECU compared with the financial
      statement of 6 April 1981 .