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Pierre Spahni
Economic Research & Consultancy Services for Wine
Tel +41 22 800 1607
Fax +41 22 800 1608
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ON GLOBAL TRENDS
'Hangover' (a picture is worth a thousand words).
Watch the noughties! Since they were featured in 'Opening Up Markets and Minds' (see below), consumption and production data for this century have undergone slight revisions, upward and downward
respectively, totalling about 1% on average, reducing the gap between the two by some 250 million litres.
As for the EU's Common Wine Policy (or 'Common Market Organisation for wine' as its officially known),
the new legislation fully entered into force in August 2009. The EU's wine page (see 'Free resources') gives you all the details. Hereafter is the commentary I made in the wake of the political decision to adopt
reform in December 2007. 'Free rein' places this older note – and this page – in context.
2 April 2010
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ON THE EUROPEAN UNION'S WINE REFORM
On 19 December 2007 the European Union finally agreed on its wine reform package, after a few heated exchanges at the EU Council of (Agricultural) Ministers and 18 months of laborious consultations over the
radical plans devised by the EU Commission [1].
As ever, the Council of Ministers opted for a diluted version of the original proposals tabled by the
Commission. These were deemed excessively liberal as well as too pessimistic on the future prospects for global wine consumption and the capability of European producers to successfully engage their
competitors on the world stage.
The Council of Ministers did agree to scrap distillation though. Its use as a market intervention tool will
end in mid-2013, after 42 years of disservice (it was introduced as an exceptional measure when a common wine policy was laid down in 1970 and reinforced twice thereafter). Only distillation of the by
-products of winemaking can remain, for environmental purposes. The EU is quite confident that 'the changes will bring balance to the wine market' [2]. Time will tell.
31 December 2007
[1] Communication from the Commission to the Council and the European Parliament -Towards a sustainable
European wine sector. COM(2006) 319 final. Commission of the European Communities, Brussels 22 June 2006. [2] CAP reform: Wine reform will boost competitiveness of European wines. IP/07/1966.
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The collection of essays featured previously on this website offers some background information on the
EU's latest wine reform, international wine trade patterns and other global market trends.
OPENING UP MARKETS AND MINDS (7 Sept 2007).
OFF BALANCE (18 May 2006).
O-N-E WORLD (10 June 2005).
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