Common organisation of the market in wine

PURPOSE: to make a certain number of technical amendments to Council Regulation 1493/1999/EC on the common organisation of the market in wine.

PROPOSED ACT: Council Regulation

CONTENT: This proposal aims to replace the obligation to distil by-products of wine-making with the obligation to withdraw such by-products under supervision in the wine-producing zone in Slovenia and Slovakia . In addition:

-the proposal also amends the annex to Regulation 1493/1999/EC regarding the classification of the wine-growing areas in Poland as wine-growing zone A.

-Authorisation is proposed for a number of oenological practices and processes which have been authorised on an experimental basis in some Member States, under the conditions set out in Commission Regulation 1622/2000/EC. The results obtained suggest that these practices and processes are beneficial to improving the management of wine production and the conservation of these products whilst posing no health risks to consumers. The International Organisation of Vine and Wine (IOVW) has already recognised and authorised these experimental practices carried out in Member States.

-Lastly, it proposes to extend the derogation for certain sparkling wines produced in the specified regions and to authorise the use of certain languages and specific wording in the labelling of wines.

FINANCIAL IMPLICATIONS :

Budget line: 05 02 09 Appropriations EUR 1 228 million

Estimated expenditure: -0.68 million for 2007 and each year subsequently.

Observations: This measure will generate a saving of EUR 0.681 million from 2006 (see calculation). Since the area under vines in Poland totals only around 100 ha, the budget impact is negligible.

Budget saving on financial costs for by-products in Slovakia and Slovenia:

Slovenia 700 000 hl

Slovakia 500 000 hl

Total 1 200 000 hl

Delivery of by-products for distillation: 3.5% of 1 200 000 42 000 hl

A Distillation

                     42 000 10% = 4 200 hl of alcohol

                     4 200 0,6 100 EUR 252 000

B Alcohol taken over

                    (115.9-19+5.32) X 4 200 = EUR 429 324

Total saving EUR 681 324

Savings from 2006 thus amount to EUR million 0.681.