WRITTEN QUESTION E-2198/98

by Bill Miller (PSE) to the Commission

(14 July 1998)

Subject: Subsidy to the wine industry

In view of the recent announcement that the Commission is considering a new subsidy to assist the wine industry, could the Commission list all the subsidies which the wine industry could possibly receive?

Answer given by Mr Fischler on behalf of the Commission

(26 October 1998)

Community aid for investment in the wine industry has been granted up until now under the only instrument in force on this subject, i.e. Council Regulation (EC) 951/97 on improving the processing and marketing conditions for agricultural products(1).

This structural scheme has to form part of a multiannual programme presented by the Member State in question and approved by Commission decision. In addition, the investment projects eligible for public subsidy must comply with Commission Decision 94/173/EC of 22 March 1994 on the selection criteria to be adopted for investments for improving the processing and marketing conditions for agricultural and forestry products(2).

Implementation of these agro-industrial programmes in the current programming period under the Structural Funds (1994-99) in the wine sector, by Member State, is set out below (in million ecu):

>TABLE>

Under the Agenda 2000 proposals(3), this type of aid is to be covered by the new Regulation on rural development, as proposed by the Commission on 18 March 1998(4).

In order to provide a complete overview of the wine sector, the Commission is sending the Honourable Member and Parliament's Secretariat a table setting out all Community expenditure under the common organisation of the market in wine with figures for 1989-98, as well as the financial statement attached to the recent reform proposal for the wine market organisation and relating to 2001-05.

The proposal for a Council Regulation (EC) on the common organisation of the market in wine(5) does provide for more spending than the average expenditure over the last few wine years. This increase is due mainly to the introduction of a scheme for the conversion of vineyards, to be financed by the EAGGF Guarantee Section under the market organisation.

Once the adjustment of vineyards to the new market conditions has taken place, it is clear that, over time, expenditure will be favourably influenced.

(1) OJ L 142, 2.6.1997.

(2) OJ L 79, 23.3.1994.

(3) COM(97) 2000 final.

(4) OJ C 170, 4.6.1998.

(5) OJ C 271, 31.8.1998.