CELEX: 51975PC0164
Language: en
Date: 1975-04-11
Title: PROPOSAL FOR A REGULATION (EEC) OF THE COUNCIL laying down general rules governing the distillation of table wines during the period from 7 June 1975 to 31 July 1975#DRAFT COUNCIL RESOLUTION concerning new guidelines designed to balance the market in wine (submitted to the Council by the Council)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (75) 164
Vol. 1975/0064
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 ---pagebreak---  COMMISSION OF THE EUROPEAN COMMUNITIES
                                                    COM(75)164 final.
                                             Bruxelles . 11 april 1975
                                                                \
                        PROPOSAL FOR A
               REGULATION (^EC) OF THE COUNCIL
         laying down general rules governing the distillation of table
         wines during the period from 7 June 1975 "to 31 July 1975
                               DRAFT
                          COUNCIL RESOLUTION  Y
               concerning new guidelines designed to "balance the
                     •    market in wine
                 ( aubaitteil te the Ceunoil by the Ceunoil)'
C0M(75 ) 164 final
 ---pagebreak---                    EXPLANATORY MEMORANDUM
       As a result of two exceptionally abundant harvests the Community wine
market has been in a state of grave crisis for several months#    Despite the
Couri3il*s Decision concerning distillation of 20/21 January 1975 * at present .
applied to 4.6 million hectolitres , prices generally remain below the
activating prices in the French and Italian quotation centres *   The production
figure emerging from the harvest returns is nearly 2 million hectolitres above
the figure - forecast in December 1974 » while the forecasts of consumptianin
Prance and Italy appear to have been overestimated by between 2 and 3 million
hectolitres#
       In the immediate future , additional opportunities for distillation appear
necessary in order to stabilize the market# It is proposed that as soon as
the present operation end a new distillation operation should take place , i.e.
from 7 June to 31 July 1975 and subject to the same conditions concerning
prices and aid as were adopted by the Council in January last . Experience of
limiting distillation applications "pro rata" and according to a predetermined
quantity has revealed serious drawbaoks , and it is therefore proposed to return
to the previous system of a decision concerning a fixed period for the
distillation operation . In the course of the period proposed , and taking into
account the capacity of wine distilleries , the estimated cost of the distil­
lation is unlikely to exceed 59 million u.a . The necessary appropriations
for this operation could be found within the framework of the Budget .
       In addition , such a distillation operation should be supplemented by
a number of general options concerning production polioy in the wine sector
during the next few years . To this end a draft resolution concerning new
guidelines for balancing the market in wine has been submitted to the Council .
 ---pagebreak---                             - 2 -
The resolution should make it possible , even before the start of the next
marketing year , to resolve problems relating to the long»-terme aims of wine-
growing polioy .
 ---pagebreak---                    PROPOSAI, FOR A
           REGULATION (EEC)OF THE COÏÏNCIL
     laying down general rules governing the distillation of table
     wines during the period from 7 June 1975 "to 31 July 1975
THE COUNCIL OF THE EUROPEAN COMMUNITIES ,
Having regard to the Treaty establishing the European Economio 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 wine ,
as last amended by Regulation (EEC ) No 678/75 2 , and in particular Article
7(1 ) thereof ;
Having regard to the proposal from the Commission }
Whereas Article 7 of Regulation (EEC ) No 816/70 provides that measures may
be adopted for the distillation of table wines if the granting of aid to
private storage alone is unlikely to be effective in restoring price levels ;
Whereas aids to private storage of table wines are at present granted for all
types of table wines ; whereas the prices for most of these wines are below1 the
activating price ;                                        '
  0J No L 99 , 5 May 1970 , p. 1
2 0J No L 72 , 20 March 1975 , p. 43
 ---pagebreak--- Whereas the possibility of conoluding nine-month storage contracts for
table wines of types R I , R II and A I during the period from 16 December 1974
to 15 February 1975 has not brought about any substantial restoration of price
levels ;
Whereas the abundant harvest ©f 1974/75 has yielded supplies considerably
in excess of the normal requirements of this wine marketing year ;
Whereas the conditions for the commencement of a distillation operation are
fulfilled ?
Whereas it is necessary to lay down the conditions under which this operation
should take place ; whereas the price for wines to be distilled should not
act as an encouragement to the production of wines primarily for the purpose
of distillation , but should nevertheless be sufficiently attractive for the
operation to be effective }
Whereas , in order to limit the scope of the measure , its duration should be
restricted ; whereas means must also be found of bringing distillation operations
to an end if prices for table   wines referred to above should rise above the
activating price ;
Whereas the prices for wines to be distilled will not permit the products
thereby obtained to be marketed on normal terms ; whereas aid should there­
fore be paid and its amount determined , taking aocount of normal costs ,
at a level which will make it possible to market the products of distillation ;
Whereas in each Member State concerned there must be a body responsible for
applying the provisions in question ,
                                                          *
HAS ADOPTED THI5 REGULATION :
                         Article 1
      The distillation of table wines Shall be permitted subject to    the
conditions laid down by this Regulation .
 ---pagebreak---                                                                      3
                            Article 2
1•             Producers who wish to have all or part of their harvest of table
wine distilled shall conolude delivery1 contracts , where appropriate through
the intervention agency , with the distillers of their choice#
2.             Under such contracta :
a ) the distiller shall purchase the quantity of table wine stated in the
    contract }
b ) the distiller shall distil such wine and shall pay for it at a price which
    shall not be less than the price referred to in Article 3 »
3.             The contracts shall specify :
a ) the quantity , colour and actual alcoholic strength of the table wines
    to be distilled ;
b ) the name and address of the producer }
c ) the place at which the wine is stored }
d ) the name of the distiller or the registered business or company name ef
    the distillery }                                             .                  .
e ) the address of the distillery *
                            Article 3 ;
••             The minimum purchase price for table wines to be distilled is
hereby fixed at 1.58 units of aocount per degree and per hectolitre *
2«             The prioe referred to shall apply in respect »f unaltered product ,
exproducer 's premises#
                            Article 4
1•             Distillation may not take place before 7 June 1975 or after
31 July 1975 .
                                                                       • • •/ • • •
 ---pagebreak--- 2.           However , it may be decided to bring forward the closing date for
 distillation , particularly if the average prices for all the types of table
 wine on all markets should for two consecutive weeks remain at a level above
 the activating price#
                            Article 5
             Products of the distillation ©f table wines may have an alcoholio
strength :
– of 86° or more ,
– of 85° or less ,
with a tolerance of 0.4    above or below .
                            Article 6
1•           For each hectolitre of wine distilled aid shall be paid by the
intervention agency .
2.           The amount of the aid is hereby fixed at t
– 0.92 units of account per degree and per hectolitre if the wine was
   processed into a product referred to in Article 5 , first indent ,
– 0.78 units of account per degree and per hectolitre if the wine was
   processed into a product referred to in Article 5 » second indent .
3.           The aid may be paid only upon production of a oontract as referred
to in Article 2 and upon proof being given that distillation took place within
the period during which such operation was authorized pursuant to Article 4 »
                            Artide 7
1.           Member States shall designate an intervention agency to be respon­
sible for applying the provisions of this Regulation .
2.           The oompetent intervention agency shall be the agency of the
State on whose territory distillation takes place .
 ---pagebreak---                         Article 8
            This Regulation shall enter into force on the third day following
the day of its publication in the Official Journal of the European
Commrjiities .
            This Regulation shall be binding in its entirety and directly
applicable in all Member States *
Done at Brussels ,                              For the Council
                                                The Président
 ---pagebreak---                           DRAFT
                     COUNCIL RESOLUTION
           concerning new guidelines designed to balance the
                     market in wine
THE COUNCIL OP THE EUROPEAN COMMUNITIES ,
Whereas the present serious surplus on the wine market proves the need for
new guidelines in order to curb the development of wine production and
restore the balance of the market in both the long and the short term ,
Whereas the last report of the Commission has shown that wine production already
exceeds normal foreseeable utilization ,
Whereas exceptional measures for distillation have been taken in order t©
permit a rapid improvement in the market situation ,
Notes the Commission's intention
– to suspend EAGGP aid under. Regulation N© 17/64/EEC to future pro jeots invel–
 •• ving the planting or( replanting of vines ,
– to adopt a negative position under Article 15 of Regulation (EEC ) N© 816/70
   towards national aids having the same object ,
– to propose to the Council measures temporarily suspending application of
   the provisions of Directive N© 72/159/e EC of 1 7 April 1972 on the moder­
   nization of farms as regards aid for the replanting of vines \ and tempo–
   rarily prohibiting all national aid for the same purpose#
                                                                     • • •/• • •
                                .
 ---pagebreak---                                                                      2
   A further decision on the maintenance of these three measures will be taken
after 1 January 1977 in the light of the effect of the following steps *
– to propose to the Council provisions regarding new planting and replanting
  of vines in order to prevent the formation of structural surpluses within
  the meaning of Article 17 ( 5 ) of Regulation (EEC ) No 816/70 .
Undertakes to take decisions on the "basis of the above proposals as quickly
as possible , and in any case before 1 August 1975 »
Agrees to examine and adopt as having priority , and before 1 August 1975 » "the
amendments to the basio regulations in the wine sector proposed by the
Commission , including measures concerning preventive distillation *