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Report from the Commission to the European Parliament and the Council on management of planting rights pursuant to Chapter I of Title II of Council Regulation (EC) No 1493/1999

/* COM/2007/0370 final */
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52007DC0370

Report from the Commission to the European Parliament and the Council on management of planting rights pursuant to Chapter I of Title II of Council Regulation (EC) No 1493/1999 /* COM/2007/0370 final */


[pic] | COMMISSION OF THE EUROPEAN COMMUNITIES |

Brussels, 29.6.2007

COM(2007) 370 final

REPORT FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT AND THE COUNCIL

on management of planting rights pursuant to Chapter I of Title II of Council Regulation (EC) No 1493/1999

TABLE OF CONTENTS

1. Introduction 3

2. New planting rights 4

2.1. New planting rights of an administrative nature 4

2.2. New planting rights to meet demand for quality wines produced in specified regions (quality wines psr) and table wines with geographical indication 4

3. Changes in the production potential 6

3.1. Replanting rights held by the producers 6

3.2. Reserves of planting rights (or “non-reserve system”) 7

3.3. Area planted with vines 9

3.4. The total production potential 10

4. Regularisation of irregular plantings 11

REPORT FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT AND THE COUNCIL

on management of planting rights pursuant to Chapter I of Title II of Council Regulation (EC) No 1493/1999

1. INTRODUCTION

Council Regulation (EC) No 1493/1999 on the common organisation of the market (CMO) in wine[1], in Article 7(3) provides that “By 31 December 2003, and at three-yearly intervals from the date, the Commission shall submit a report to the European Parliament and the Council on the operation of this Chapter [i.e. the chapter on ‘Planting of vines’]. The report may be accompanied, if appropriate, by proposals for the grant of further newly created planting rights.” In line with this obligation, a report was submitted to the European Parliament and the Council early in 2004[2].

The present document intends to be the update of the report of 2004. While doing so,

- in order to observe and evaluate trends, it takes stock of the entire period since the date of application of the current CMO on 1 August 2000;

- it does not repeat information concerning the explanation of the background and the content of the Community legislation. Where appropriate, the structure of this report follows that of the 2004 report;

- the scope has been widened to include the 10 new Member States which joined on 1 May 2004 (EU 10) but not to those new Member States which joined on 1 January 2007. However, for the sake of better presentation, and since data for the new Member States is available only for a shorter period, the graphs in this document only present data of the Member States that were members of the Community before 2004 (EU 15).

The communication discipline of the Member States improved considerably in the last years. Also, as a result of controls (clearance of accounts missions) carried out by the Commission services, the data communicated in the framework of Commission Regulation (EC) No 1227/2000[3] became more in consistent with the data bases (vineyard register) kept by the Member States.

However, in spite of the improvement of the availability of data, in some cases they are still not communicated. So as to be able to provide as good a picture as possible in spite of these missing data, figures of the preceding or, when necessary, of the following wine year were used in some tables and graphs, in order to give an approximate picture of the situation and the tendencies. In such cases, the figures taken over from the preceding/following wine year are indicated in Italics. Other codes used in the table are the following: NR = not relevant, NC = not communicated.

This report is intended to be purely factual and does not contain any policy recommendation. However, it provides useful background information in the context of the ongoing debate on the reform of the CMO in wine launched by the Commission Communication on 22 June 2006[4].

2. NEW PLANTING RIGHTS

2.1. New planting rights of an administrative nature

The new planting rights of an administrative nature are defined in Article 3(1) of Regulation (EC) No 1493/1999. The new planting rights granted according to this provision during the period 2000–2006 are the following:

Table 1. Area of additional new planting rights granted

(ha) | Compulsory purchase | Land consolidation | Experiments | Graft nurseries | Family consumption | Total |

Czech Republic | 0,00 | 117,99 | 4,34 | 0,00 | 0,00 | 122,33 |

Germany | 0,00 | 4,95 | 7,84 | 0,00 | 0,63 | 13,42 |

Spain | 182,58 | 282,75 | 36,55 | 92,55 | 0,00 | 594,43 |

France | 16,29 | 18,30 | 19,17 | 61,36 | 0,00 | 115,12 |

Italy | 19,28 | 5,02 | 97,83 | 151,07 | 4 292,21 | 4 565,41 |

Portugal | 0,00 | 0,00 | 0,80 | 27,73 | 0,00 | 28,53 |

Slovakia | 0,00 | 0,00 | 0,00 | 617,00 | 0,00 | 617,00 |

Total | 218,15 | 429,02 | 166,54 | 949,70 | 4 292,84 | 6 056,25 |

Source: Communications of the Member States according to Table 2.1 of the Annex to Regulation (EC) No 1227/2000. |

No planting rights of an administrative nature were granted during the above mentioned period in Greece, Cyprus, Luxembourg, Hungary, Malta, Austria and Slovenia.

2.2. New planting rights to meet demand for quality wines produced in specified regions (quality wines psr) and table wines with geographical indication

Out of the “quota” of the newly created planting rights provided for in Article 6(1) of Regulation (EC) No 1493/1999, new planting rights could be granted by the Member States no later than 31 July 2003 for the production of quality wines psr or table wines described by means of a geographical indications where it was recognised that, owing to their quality, the production of the wines in question was far below demand (see Article 3(2) to (5) and Article 6 of the Regulation (EC) No 1493/1999). The uptake of the “quota” of newly created planting rights for this purpose is shown in Table 2.

Table 2 . Use of the newly created planting rights for planting vineyards to produce quality wines and table wines with geographical indication

New planting rights (Art. 3(2) of R. 1493/1999) (ha) | “Quota” (Art. 6(1) of R. 1493/1999) (ha) | Percentage of use (%) |

Germany | 471 | 1 534 | 31 |

Greece | 1 098 | 1 098 | 100 |

Spain | 17 107 | 17 355 | 99 |

France | 9 377 | 13 565 | 69 |

Italy | 3 688 | 12 933 | 29 |

Luxembourg | 0 | 18 | 0 |

Austria | 0 | 737 | 0 |

Portugal | 3 041 | 3 760 | 81 |

Total | 34 783 | 51 000 | 68 |

Source: Communications of the Member States according to Table 2.2 of the Annex to Regulation (EC) No 1227/2000 and Article 6 of Regulation (EC) No 1493/1999. |

The utilisation of these new planting rights is shown in Table 3.

Table 3. Area of new planting rights granted to meet demand for quality wines and table wines with geographical indication

2000/2001– 2002/2003 | Quality wines (ha) | Table wines with GI (ha) | TOTAL (ha) | % of quality wines |

Germany | 471 | 0 | 471 | 100 |

Greece | 362 | 736 | 1 098 | 33 |

Spain | 16 126 | 981 | 17 107 | 94 |

France | 6 875 | 2 502 | 9 377 | 73 |

Italy | 3 423 | 265 | 3 688 | 93 |

Luxembourg | 0 | 0 | 0 | – |

Austria | 0 | 0 | 0 | – |

Portugal | 2 456 | 585 | 3 041 | 81 |

Total | 29 714 | 5 069 | 34 783 | 85 |

Source: Communications of the Member States according to Table 2.2 of the Annex to Regulation (EC) No 1227/2000. |

According to the Act of Accession[5], the Czech Republic was granted 385,23 hectares of newly created planting rights for the production of quality wines psr which had to be allocated to the reserve.

With the same Act of Accession, newly created planting rights were allocated to Malta for the production of quality wines psr up to a total planted wine area of 1 000 ha. The part of these rights that was not used by the 2005/2006 wine year had to be allocated to the reserve.

3. CHANGES IN THE PRODUCTION POTENTIAL

3.1. Replanting rights held by the producers

The amount of replanting rights held by the producers according to Article 4 of Regulation (EC) No 1493/1999 and Article 4 of Regulation (EC) No 1227/2000 are shown in Table 4 and Graph 1.

Table 4. Replanting rights held by the producers

(ha) | 2000/2001 | 2001/2002 | 2002/2003 | 2003/2004 | 2004/2005 | 2005/2006 |

Czech Republic | NR | NR | NR | 0 | 154 | 192 |

Germany | 3 900 | 4 235 | 4 184 | 4 366 | 4 436 | 4 285 |

Greece | 2 376 | 2 376 | 560 | 1 682 | 1 206 | 987 |

Spain | 74 189 | 83 315 | 80 949 | 82 814 | 88 475 | 88 412 |

France | 45 094 | 47 611 | 51 942 | 44 823 | 43 749 | 43 702 |

Italy | 42 056 | 44 448 | 41 103 | 47 748 | 46 502 | 52 465 |

Cyprus | NR | NR | NR | 467 | 596 | 596 |

Luxembourg | 0 | 0 | 0 | 12 | 0 | 0 |

Hungary | NR | NR | NR | 12 509 | 13 525 | 14 266 |

Malta | NR | NR | NR | 0 | 0 | 0 |

Austria | 12 592 | 12 695 | 5 313 | 5 501 | 8 897 | 9 030 |

Portugal | 12 809 | 10 737 | 12 045 | 13 541 | 17 124 | 17 124 |

Slovenia | NR | NR | NR | 0 | 276 | 251 |

Slovakia | NR | NR | NR | 0 | 500 | 500 |

Subtotal EU 15 | 193 016 | 205 417 | 196 097 | 200 488 | 210 390 | 216 004 |

Subtotal EU 10 | NR | NR | NR | 12 976 | 15 051 | 15 805 |

Total | 193 016 | 205 417 | 196 097 | 213 463 | 225 441 | 231 809 |

Source: Communications of the Member States according to Table 7.2 and, where applicable, Table 7.1 of the Annex to Regulation (EC) No 1227/2000. |

Graph 1. Replanting rights held by the producers (ha, EU-15)

[pic]

3.2. Reserves of planting rights (or “non-reserve system”)

According to Article 5(1) of Regulation (EC) No 1493/1999, Member States shall create a national reserve, and/or as the case may be, regional reserves, of planting rights. By derogation, Member States may choose not to implement the reserve system provided that they can prove that an effective system for managing planting rights exists throughout their territory (see Article 5(8) of Regulation (EC) No 1493/1999).

Table 5 shows which Member States apply a reserve system and on what level.

Table 5. Reserve systems

National reserve | Regional reserves | ”Non-reserve system” |

Czech Republic | yes | no | no |

Germany[6] | no | yes | yes |

Greece | yes | no | no |

Spain | yes | yes | no |

France | yes | no | no |

Italy | no | yes | no |

Cyprus | yes | no | no |

Luxembourg | no | no | yes |

Hungary | no | no | yes |

Malta | yes | no | no |

Austria | yes | yes | no |

Portugal | yes | no | no |

Slovenia | yes | no | no |

Slovakia | yes | no | no |

Source: Communications of the Member States. |

All the new Member States have adopted the national reserve system, except Hungary which has chosen the “effective system”.

Table 6 shows the quantity of the existing planting rights in the reserves.

Table 6. Existing planting rights in the national/regional reserves

(ha) | 2000/2001 | 2001/2002 | 2002/2003 | 2003/2004 | 2004/2005 | 2005/2006 |

Czech Republic | NR | NR | NR | 385 | 385 | 263 |

Germany | 65 | 200 | 178 | 165 | 207 | 235 |

Greece | 0 | 0 | 0 | 4 161 | 3 129 | 555 |

Spain | 4 448 | 7 457 | 6 242 | 7 789 | 8 913 | 11 519 |

France | 0 | NC | NC | 6 286 | 7 580 | 9 475 |

Italy | 109 | 658 | 2 780 | 8 679 | 7 671 | 6 173 |

Cyprus | NR | NR | NR | 2 000 | 1 998 | 1 998 |

Luxembourg | NR | NR | NR | NR | NR | NR |

Hungary | NR | NR | NR | NR | NR | NR |

Malta | 0 | 0 | 0 | 0 | 0 | NC |

Austria | 50 | 50 | 7 745 | 7 396 | 7 756 | 7 965 |

Portugal | 206 | 206 | 208 | 590 | 590 | 606 |

Slovenia | NR | NR | NR | 5 609 | 4 249 | 4 148 |

Slovakia | NR | NR | NR | 2 037 | 1 052 | 1 052 |

Subtotal EU 15 | 4 878 | 8 571 | 17 153 | 35 066 | 35 846 | 36 528 |

Subtotal EU 10 | NR | NR | NR | 10 031 | 7 684 | 7 460 |

Total | 4 878 | 8 571 | 17 153 | 45 097 | 43 529 | 43 988 |

Source: Communications of the Member States according to Table 7.2 and, where applicable, Table 7.1 of the Annex to Regulation (EC) No 1227/2000. |

Graph 2. Planting rights in the reserve (ha, EU-15)

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The figures presented in Table 4 (replanting rights held by the producers) and even more those in Table 6 (planting rights in the reserve) and Table 9 (total of planting rights) show an increasing tendency of the accumulation of the planting rights. This may demonstrate the reduced interest of producers to plant but also the limitations in some Member States of the authorisation of new planting and replanting rights due to the unfavourable market situation. The allocation of newly created planting rights to the reserves could also be a reason for the increase of the planting rights in them.

3.3. Area planted with vines

Table 7. Area planted with vines

(ha) | 2000/2001 | 2001/2002 | 2002/2003 | 2003/2004 | 2004/2005 | 2005/2006 |

Czech Republic | NR | NR | NR | 19 262 | 19 107 | 19 081 |

Germany | 104 211 | 103 527 | 103 122 | 102 714 | 102 483 | 102 432 |

Greece | 77 589 | 77 589 | 80 794 | 64 778 | 66 284 | 66 682 |

Spain | 1 124 433 | 1 115 322 | 1 120 568 | 1 116 950 | 1 104 512 | 1 099 765 |

France | 902 908 | 907 669 | 896 155 | 893 073 | 897 067 | 879 859 |

Italy | 772 513 | 768 995 | 748 680 | 728 213 | 726 985 | 730 439 |

Cyprus | NR | NR | NR | 16 811 | 15 047 | 13 068[7] |

Luxembourg | 1 342 | 1 342 | 1 309 | 1 293 | 1 300 | 1 299 |

Hungary | NR | NR | NR | 87 017 | 86 000 | 85 260 |

Malta | NR | NR | NR | 710 | 840 | 910 |

Austria | 50 456 | 50 350 | 51 136 | 51 030 | 50 988 | 50 681 |

Portugal | 238 073 | 240 265 | 241 119 | 239 952 | 236 704 | 238 831 |

Slovenia | NR | NR | NR | 16 351 | 16 597 | 16 704 |

Slovakia | NR | NR | NR | 21 047 | 21 531 | 21 531 |

Subtotal EU 15 | 3 271 525 | 3 265 059 | 3 242 884 | 3 198 002 | 3 186 324 | 3 169 988 |

Subtotal EU 10 | NR | NR | NR | 161 197 | 159 122 | 156 554 |

Total | 3 271 525 | 3 265 059 | 3 242 884 | 3 359 199 | 3 345 446 | 3 326 542 |

Source: Communications of the Member States according to Table 7.2 and, where applicable, Table 7.1 of the Annex to Regulation (EC) No 1227/2000. |

The area planted with vines has been constantly decreasing during the years considered. The increase in the total EU vine area in 2003/2004 can be attributed to the enlargement of the Community but since then, the tendency of decrease has continued.

The grubbing-up measure according to Article 8 of Regulation (EC) No 1493/1999 could contribute to the decrease: it was applied on a relatively larger scale in Germany (1 514 hectares grubbed up between 2000/2001 and 2005/2006), France (15 340 hectares grubbed up between 2000/2001 and 2005/2006), in Cyprus (1 979 ha grubbed up in 2004/2005) and in Hungary (3 574 ha grubbed up in 2005/2006)[8].

In addition, the decrease of the area actually planted, just as the increased availability of replanting rights at the producers can be attributed partially to the increased grubbing-up within the frame of the restructuring and conversion scheme.

However, the diminution of the area actually planted exceeds the augmentation of the replanting rights, showing that apparently, areas are abandoned without premium for the grubbing-up and without the producers’ asking for replanting right, being yet another sign of the unfavourable market situation in the wine sector. This presumption seems to be confirmed also by the data about the total production potential (see Table 8).

3.4. The total production potential

Table 8 shows the totality of the Community production potential, including the areas actually planted and all the planting rights, whether held by the producers or attributed to a reserve.

Table 8. Community production potential

(ha) | 2000/2001 | 2001/2002 | 2002/2003 | 2003/2004 | 2004/2005 | 2005/2006 |

Czech Republic | NR | NR | NR | 19 647 | 19 647 | 19 647 |

Germany | 108 419 | 108 065 | 107 578 | 107 332 | 107 158 | 106 976 |

Greece | 80 016 | 80 016 | 81 354 | 71 718 | 71 302 | 71 243 |

Spain | 1 216 007 | 1 213 221 | 1 211 149 | 1 209 093 | 1 201 931 | 1 199 696 |

France | 949 389 | 957 220 | 951 123 | 944 182 | 948 396 | 933 036 |

Italy | 822 932 | 819 380 | 799 937 | 790 622 | 786 644 | 796 701 |

Cyprus | NR | NR | NR | 19 278 | 17 641 | 15 6627 |

Luxembourg | 1 342 | 1 342 | 1 309 | 1 305 | 1 300 | 1 299 |

Hungary | NR | NR | NR | 99 526 | 99 525 | 99 526 |

Malta | NR | NR | NR | 1000 | 1000 | 1000 |

Austria | 63 098 | 63 094 | 64 244 | 63 928 | 67 641 | 67 676 |

Portugal | 254 848 | 252 115 | 254 847 | 254 083 | 254 418 | 254 164 |

Slovenia | NR | NR | NR | 21 960 | 21 122 | 21 103 |

Slovakia | NR | NR | NR | 23 084 | 23 083 | 23 083 |

Subtotal EU 15 | 3 496 051 | 3 494 454 | 3 471 542 | 3 442 263 | 3 438 790 | 3 430 791 |

Subtotal EU 10 | NR | NR | NR | 184 494 | 182 017 | 180 021 |

Total | 3 496 051 | 3 494 454 | 3 471 542 | 3 626 757 | 3 620 807 | 3 610 812 |

Source: Communications of the Member States according to Table 7.2 and, where applicable, Table 7.1 of the Annex to Regulation (EC) No 1227/2000. |

Table 8 shows a slight decrease in the total production potential along the years from 2000 to 2006, both in total and in case of most of the Member States, though in case some of them, the production potential remained at a constant level. Like in the case of the areas planted with vines, the increase of the production potential in 2003/2004 is due to the enlargement of the Community in 2004. This proves that the system of reserves has helped to maintain production potential on a more or less stable level, by preventing the extinction of planting rights not actually used.

The total of planting rights in Table 9 represents the sum of the new rights allocated to producers but not yet used, replanting rights held by the producers, new rights awaiting allocation to reserve (Article 3(2) of Regulation (EC) No 1493/1999) and existing rights in reserve.

Table 9. Total of planting rights

(ha) | 2000/2001 | 2001/2002 | 2002/2003 | 2003/2004 | 2004/2005 | 2005/2006 |

Czech Republic | NR | NR | NR | 385 | 540 | 566 |

Germany | 4 208 | 4 538 | 4 456 | 4 619 | 4 675 | 4 543 |

Greece | 2 427 | 2 427 | 560 | 6 941 | 5 018 | 4 562 |

Spain | 91 574 | 97 899 | 90 581 | 92 143 | 97 419 | 99 931 |

France | 46481 | 49 551 | 54 968 | 51 109 | 51 329 | 53 177 |

Italy | 50 419 | 50 385 | 51 257 | 62 410 | 59 659 | 66 262 |

Cyprus | NR | NR | NR | 2 467 | 2 594 | 2 594 |

Luxembourg | 0 | 0 | 0 | 12 | 0 | 0 |

Hungary | NR | NR | NR | 12 509 | 13 525 | 14 266 |

Malta | NR | NR | NR | 290 | 160 | 90 |

Austria | 12 642 | 12 745 | 13 108 | 12 897 | 16 653 | 16 995 |

Portugal | 16 775 | 11 850 | 13 728 | 14 131 | 17 714 | 15 333 |

Slovenia | NR | NR | NR | 5 609 | 4 524 | 4 399 |

Slovakia | NR | NR | NR | 2 037 | 1 552 | 1 552 |

Subtotal EU 15 | 224 526 | 229 395 | 228 658 | 244 261 | 252 466 | 260 803 |

Subtotal EU 10 | NR | NR | NR | 23 297 | 22 895 | 23 467 |

Total | 224 526 | 229 395 | 228 658 | 267 558 | 275 361 | 284 270 |

Source: Communications of the Member States according to Table 7.2 and, where applicable, Table 7.1 of the Annex to Regulation (EC) No 1227/2000. |

On the assumption of an average Community yield of 53 hl/ha[9], this corresponds to a potential production of approximately 15 millions hl.

4. REGULARISATION OF IRREGULAR PLANTINGS

Article 2(3) of Regulation (EC) No 1493/1999 foresees the possibility of regularisation of vineyards planted in contravention of the Community legislation before 1 September 1998. Table 10 gives the areas for which regularisation applications were lodged.

Table 10. Regularisation of irregular plantings

(ha) | Regularised | Regularisation refused | Under examination | Total identified irregular plantings |

Germany | 2 | 2 | 0 | 4 |

Greece | 8 141 | 0 | 4 128 | 12 268 |

Spain | 43 470 | 11 079 | 540 | 55 088 |

France | 270 | 173 | 0 | 444 |

Italy | 753 | 6 | 51 846 | 52 604 |

Portugal | 60 | 0 | 39 | 100 |

Total | 52 696 | 11 259 | 56 552 | 120 507 |

Source: Communications of the Member States according to Table 1 of the Annex to Regulation (EC) No 1227/2000. |

Luxembourg and Austria state that they have not received any applications for regularisation. As for the new Member States (EU 10), the provision is not relevant.

Article 2(3) of Regulation (EC) No 1493/1999 required regularisation procedures to be terminated by 31 July 2002 but several Member States have encountered difficulty in applying the Community rules. In response to Member States’ requests, the Commission has deferred the final date: according to the final amendment concerned[10], the possibility of regularisation runs out on 31 December 2007.

[1] OJ L 179, 14.7.1999, p. 1.

[2] COM(2004) 161 final of 12.3.2004.

[3] laying down detailed rules for the application of Council Regulation (EC) No 1493/1999 as regards production potential (OJ L 143, 16.6.2000, p. 1).

[4] COM(2006) 319 final of 22.6.2006.

[5] Act concerning the conditions of accession of the Czech Republic, the Republic of Estonia, the Republic of Cyprus, the Republic of Latvia, the Republic of Lithuania, the Republic of Hungary, the Republic of Malta, the Republic of Poland, the Republic of Slovenia and the Slovak Republic and the adjustments to the Treaties on which the European Union is founded – Annex II: List referred to in Article 20 of the Act of Accession – 6. Agriculture – A. Agricultural legislation (OJ L 236, 23.9.2003, p. 346–380).

[6] Germany has a mixed system: reserves in certain regions and the “effective system” in others.

[7] Data for Cyprus have not yet been communicated for the wine year 2005/2006; the figure indicated for this year represents the area under vine in the previous wine year minus the grubbed-up area.

[8] Source: Communications of the Member States according to Table 3.1 of the Annex to Regulation (EC) No 1227/2000.

[9] Average yield of EU-25 over the last five years.

[10] Regulation (EC) No 1216/2005 (OJ L 199, 27.9.2005, p. 32).

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