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EC Outlines Measures To Support Europe’s Struggling Wine Industry

The European Commission (EC) has put forward a range of measures aimed at ensuring Europe’s wine sector remains “competitive, resilient, and a vital economic force in the decades to come”.

The EU accounts for 60% of the world’s wine production, with Italy, France, and Spain as the top producers. The EC noted that the sector is facing several challenges, such as shifting consumer trends, climate change, and market uncertainties.

Its proposal introduces targeted measures to help the sector “manage production potential, adapt to evolving consumer preferences, and unlock new market opportunities”.

Key changes to the Commission’s wine policy framework include:

  • Surplus prevention: Member States will be empowered to take action, such as grubbing-up (removing unwanted or excess vines) and green harvesting (removing unripe grapes before harvest), to prevent surplus production, help stabilise the market and protect producers from financial strain.
  • Planting flexibility: Producers will be allowed additional flexibility on the replanting authorisations scheme. This will help them taking their investment decision in the current changing context. Member States will also be allowed to better calibrate the planting authorisations to their national and regional needs.
  • Climate support: The sector will receive stronger support to become more resilient to climate change. Member States can increase the maximum Union financial assistance up to 80% of the eligible investment costs for investments aimed at climate change mitigation and adaptation.
  • Clear marketing rules: Marketing of innovative products will be easier, with clearer rules and common product denominations for lower alcohol wine products across the single market.
  • Harmonised labelling: Operators will benefit from a more harmonised approach to wine labelling, reducing costs and simplifying trade across EU borders while providing consumers with easy access to information.
  • Boosted wine tourism: Producer groups managing wine protected under geographical indications will receive assistance to develop wine-related tourism, helping to boost economic development in rural areas.
  • Extended promotion: The duration of EU-funded promotional campaigns for market consolidation in third countries will be extended from 3 to 5 years to ensure better promotion of European wines.

Christophe Hansen, Commissioner for Agriculture and Food, commented: “The EU is the global leader in wine production and exports. Beyond the economic weight of the sector and the savoir-faire of our wine producers, vineyards are part of our landscapes and cultural heritage. This is why I am now presenting this package of measures, directly responding to the requests of the sector and the Member States.

“I am confident that our proposals will help stabilise the market and will enable the producers to seize new opportunities and respond to evolving consumer expectations. I invite the Member States and the European Parliament to act swiftly towards the final adoption and implementation of these measures to bring relief to the sector.”

Earlier this month, US President Donald Trump threatened a 200% tariff on any alcohol coming to the US from Europe. This was in response to the EU’s plans for a 50% tax on imports of US-produced whiskey as part of its retaliation to Trump’s tariffs on all steel and aluminium imports to the US.