Today the Commission adopted the extension of exceptional measures to support the wine sector by one year, making the measures applicable until 15 October 2021 and retroactive from 16 October 2020. Hard hit by the consequences of the Covid-19 crisis, the wine sector suffered from the closure of restaurants and bars across the EU, the restrictions and cancellations of celebrations as well as rapid changes in demand. The US tariffs on EU wine have also contributed to the difficulties faced by the market, limiting exports to the USA, in the context of the Boeing/Airbus WTO dispute.
Adopted in 2020, the measures aim at maximising the use of the budget available under the national support programmes for wine.
Today’s adoption prolongs the following exceptional measures:
- Crisis distillation and storage aid and advanced payments: these measures allow the removal of wine from the EU market, limiting the negative impact on prices and improving operators’ cash flow. Member States can provide advanced payments for 100% of costs, enabling them to fully utilise their national support programme funds and to release market pressure more rapidly.
- Higher European Union's contribution: the European Union's contribution for all measures of the national support programmes in the wine sector may reach 70%, an increase of 20%. This will continue to provide financial relief to beneficiaries.
- Increased flexibility under market support programmes: this includes for instance an increased flexibility of tools to control production potential, the so-called green harvesting tool, and the possibility for Member States to adapt their wine support programmes and for beneficiaries to adjust their operations as needed.
Due to the unprecedented challenges caused by the Covid-19 pandemic, a first package of measures was adopted in May 2020. These measures were complemented by a second package for the wine sector adopted in July 2020.
Common agricultural policy's market measures
- Publication date
- 28 January 2021
- Directorate-General for Agriculture and Rural Development