EU
Commission authorizes France to provide additional support to wine producers
The Commission has adopted a decision authorizing France to provide additional support to wine producers through crisis distillation. This measure aims to reduce wine stocks, free up storage capacity and restore the balance between supply and demand on the French wine market affected by the coronavirus crisis.
France introduced the distillation of wine in the event of a crisis in its national support programme for the wine sector for 2020. However, the reduction in production by one million hectolitres was insufficient. France has estimated that it should withdraw a total of 3.3 million hectolitres of wine from the French market. Thanks to this decision, national payments will cover the costs of the additional volume for crisis distillation. Delivery of wine to distilleries will be voluntary. The wine will be distilled into alcohol used for industrial purposes, including disinfection, or for pharmaceutical or energy purposes.
The level of the national payment should be set at €83 per hectolitre of wine bearing a protected designation of origin or a protected geographical indication and at €63 per hectolitre of wine without a protected designation of origin or protected geographical indication. This decision comes in addition to a set of exceptional support measures for the wine sector adopted by the Commission on 7 July, 2020.
On that date, the Commission authorized the member states to pay advances to operators for distillation operations and crisis storage in progress. These advances can cover up to 100% of the costs and will allow member states to fully use the funds of their national support programme for this year.
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