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How can the economic difficulties of winemakers be remedied?. Photo by qimono on Pixabay

Brussels/Verona, 7 April 2025

Main Take-aways

Context and Rationale
  • EU wine sector is at a crossroads, facing declining consumption (especially red wine), geopolitical tensions, climate change impacts, and the threat of new U.S. tariffs.
  • COVID-19 aftermath, volatile global markets, and extreme weather have further strained producers.
  • The EU wine sector contributes 60% of global wine consumption — a major economic and cultural asset.

 

The “Wine Package” Proposal – Key Measures

1. Supply-Side Reforms

  • Extended replanting authorisations from 5 to 8 years, with no penalties if unused.

  • New regional controls to restrict vineyard planting in sensitive landscapes (e.g. slopes).

  • Voluntary tools to manage overproduction, including:

    • Regulated yields

    • Wine stock management

    • Voluntary/mutual distillation and green harvesting

    • Nationally funded crisis response tools

2. Climate Resilience

  • EU co-financing increased to 80% for investments that mitigate/adapt to climate change (e.g., hail protection, irrigation).

3. Demand-Side Reforms

  • Introduction of ‘alcohol-free’ and ‘alcohol-light’ wine definitions to align with changing consumer preferences.

  • Eased rules for de-alcoholised sparkling wine production.

  • Label simplification via harmonised QR codes and upcoming EU-wide pictograms to reduce red tape and export complexity.

4. Wine Tourism and Promotion

  • Geographical Indication (GI) groups can access EU funds to promote regional wine tourism.

  • Export promotion campaigns extended from 3 to 5 years to better establish market presence abroad.

5. Trade and Global Markets

  • Strong opposition to new U.S. tariffs; EU to pursue negotiations and expand into new markets (Mercosur, India, Canada, Japan).

  • Emphasis on opening markets, not closing them.

 

Political Support & Next Steps
  • The proposal reflects the consensus of the High-Level Group on Wine Policy, endorsed by Member States and stakeholders.

  • The proposal is awaiting legislative approval from EU Parliament and Council.

 


Speech by Commissioner Hansen at the Vinitaly wine exhibition in Verona, Italy – Presentation of the “Wine Package”

“Check against delivery”

Signore e signori, ladies and gentlemen,

Just a few days after my first visit to Italy, I am returning for a second time—here to Verona—and it is truly an honour and a pleasure. I want to thank the Minister Francesco Lollobrigida for the invitation. I am back today because of the importance of VinItaly, which for nearly 60 years has successfully played a vital role in connecting policymakers, producers, businesses and consumers.

Today is an opportunity for me to rediscover the excellence of Italian wine production, and to present for the first time the Wine Package proposal, published few days ago. I also want to express my commitment and readiness to support the wine sector.

European wine is renowned across the world for its reputation and quality, with 60% of all wine consumed coming from the EU.  This is a tremendous achievement and a source of pride.

But today, the sector is facing difficult circumstances.  We have reached something of a crossroads.

It is the right time for the Commission to take action to support the EU wine sector.

Consumption is falling inside the EU, mostly for red wine. Our export markets are shaken by geopolitical tensions. The last few years were made very challenging by the COVID-19 pandemic, lower consumer confidence and the volatile international situation. Increasingly extreme weather conditions have put our vineyards under serious strain.

Here, and most unfortunately, I must mention the recent announcement by the United States to impose universal tariffs on the whole world, including the EU.

The global economy will suffer massively. Uncertainty will spiral and trigger the rise of further protectionism. The consequences will be dire for millions of people around the globe. This is the opposite of what we want to achieve.

Still, it is not too late to address concerns through negotiations. We will work towards reducing barriers, not raising them.  And that is why we must work harder than ever to open new markets and strengthen existing ones: Mercosur, India, Canada, Japan—which I will visit in June as part of a High-Level Mission. All my efforts will be focused on creating new opportunities for European producers.

The tariffs come at a particularly bad moment for EU wine producers.

This development is very worrying, especially when we look at the future and the long-term prospects for the sector, as discussed in the EU Wine Market Observatory.

To make the European wine sector fit for the future, the High-Level Group on Wine Policy was set up with the aim of making recommendations for policy measures.

At its last meeting in December, the Group endorsed recommendations for policy options on managing production potential and the sector’s resilience in a changing world, as well as measures to help producers make the most of new opportunities.

These recommendations reflect the different policy needs of our very diverse and dynamic wine sector. They were supported by all Member States as well as major stakeholder organisations.

Given the major challenges faced by the EU wine sector, I presented just ten days ago a legal proposal – what we call the “wine package” – so that the most urgent recommendations of the High-Level Group can be put into effect quickly.

Other recommendations of a more horizontal nature will be considered in forthcoming initiatives for simplifying the Common Agricultural Policy, or as part of its next reform.

Let me set out the main elements of the wine package, starting with the supply side.

First of all, the validity of replanting authorisations will be extended to eight years.

Second, there will be no administrative penalty if they are not used. This gives growers more time to analyse market demand and to re-orientate or decrease their production.

And third, Member States will get new tools to limit the issuing of new planting and replanting authorisations at regional level. This will allow them to preserve landscape features like slopes and terraces and avoid relocating vineyards from slopes to plains, which also avoids excessive increases in yield.

To cope with excess supply, Member States can also impose rules to regulate supply and set maximum yields.

For example, they can set rules to manage wine stocks if representative producer organisations or interbranch organisations of the region concerned make such a proposal. Of course, the demand must come form the producers and be voluntary.

Lastly, new flexible and rapid tools will be made available to Member States in the event of a market crisis. They will be able to implement voluntary or mandatory distillation of wine, voluntary green harvesting and voluntary grubbing up of productive vineyards. Nationally financed, these measures can be activated quickly if the need arises.

Addressing oversupply before the wine is produced is more cost-effective and, I think, better for producers as well.  After all, they have worked very hard to produce their wine.

So naturally, they are not keen to see it sent for distillation instead of consumption.

To address the challenges posed by climate change, we are increasing the EU support to 80% of the eligible costs for investments and innovation contributing to climate change mitigation and adaptation, for example protection against hail, irrigation systems, etc.

I will now turn to the demand side, where consumers are increasingly interested in wine products with a lower alcohol content. This market is developing rapidly.

To align our approach and use more familiar terms to make it easier for consumers to find the product they want, we have introduced two new definitions: ‘alcohol-free’ and ‘alcohol-light’ which are two terms well known and recognised by consumers. We also proposed to update the rules for producing de-alcoholised sparkling wine and aerated sparkling wine. There is high demand for these products, and we want to make it easier for producers to deliver them.

On labelling: our proposal will further simplify the free movement of wine across the EU by aligning the QR-code used for informing consumers of the ingredients and the nutritional declaration. At the moment, some countries require the words “ingredients” or “nutrition” near the QR code, or both. This forces producers to create different labels for each market, increasing costs and confusion.

Once our proposals are adopted by the Member States and the European Parliament, the Commission will start working to issue common rules to identify a pictogram or symbol instead of words put on the package or label. This will be valid across the EU and not require any translation.

It will facilitate exports, reduce legal risk and costs for operators, and make the information behind the code easily accessible to consumers.

Ladies and gentlemen,

At difficult times, producers stand a better chance if they work together.

This is especially true for the wine sector, where most holdings are small producers.

Italy is one of the world’s dream destinations for wine lovers. Let’s build on that!

Wine tourism in Italy is based on long traditions of winemaking, amazing food, breathtaking landscapes, and historic and innovative wineries.

Our proposals will enable producer groups managing Geographical Indications to access funding  for developing and promoting wine tourism in their regions.

Since GI groups are based on the territory, they are the best placed to develop effective coordinated wine tourism initiatives.  Italy has 529 Italian wine GIs. Easy to think about Prosecco, which has shown remarkable attractiveness, growth and strength both in the domestic and international markets—but also Chianti, Montepulciano d’Abruzzo, Barbera, Primitivo di Manduria and many others.

Wine producers are also promoting their products abroad, outside of the EU. They asked for a longer duration of the promotion and communication campaign they run, to be able to fully set up in the targeted market. We listened to them. Campaigns co-funded by the EU will now last 5 years instead of 3 years: good news for an export-oriented sector like European wines.

Now that the Commission has presented its proposal, I am looking forward to the discussions with the co-legislators. They have shown great support for the work carried out by the High-Level Group and welcomed its conclusions.

With their support, I hope that we will be able to get this legislation over the line as soon as possible. In these difficult times, we must help the EU wine sector as much as we can and provide it with the new opportunities that it so urgently needs.

Thank you.

Source of the speech: EU Commission

Source of the Take-aways: ChatGPT / Insight EU

 

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