In their third debate on options for reform of the European Union wine sector, EU agriculture ministers, meeting in Luxembourg on 22-23 October, discussed ways to balance supply and demand and win back markets.

The idea of transferring payments from the first pillar (direct and market aid) to the second pillar (rural development) of the common agricultural policy is still seen as a major stumbling block in the eyes of many delegates. A budget rising from EUR 100 million in 2009 to EUR 400 million from 2014 would be allocated to support communities involved in the wine sector.

In order to improve competitiveness in the sector and help those wishing to leave it, producers would be offered grubbing up aid over five years. The average premium would decrease from EUR 7,174/hectare in year one to EUR 2,938/ha in year five. The budget for such a measure, which would be implemented on a voluntary basis, could cover up to 200,000 hectares of vineyards.

The EU is facing increasing competition from other world wine producers. The European Commission is hoping that an agreement can be reached by the end of the year.

More information:
Council press release (pdf) (p. 9)
Commission website: Reform of the wine sector
Council webcast of press conference