2001/52/EC: Commission Decision of 20 September 2000 on the State aid implemented by France in the wine-growing sector (notified under document number C(2000) 2754)

• Published date: 19 January 2001
• Date of Signature: 30 March 2001
• Official Gazette Publication: Gazzetta ufficiale delle Comunità europee, L 17, 19 gennaio 2001,Diario Oficial de las Comunidades Europeas, L 17, 19 de enero de 2001,Journal officiel des Communautés européennes, L 17, 19 janvier 2001,Diario Oficial de las Comunidades Europeas, L 158, 14 de junio de 2001

|

32001D0052

2001/52/EC: Commission Decision of 20 September 2000 on the State aid implemented by France in the wine-growing sector (notified under document number C(2000) 2754)

Official Journal L 017 , 19/01/2001 P. 0030 - 0037

Commission Decision

of 20 September 2000

on the State aid implemented by France in the wine-growing sector

(notified under document number C(2000) 2754)

(Only the French text is authentic)

(2001/52/EC)

THE COMMISSION OF THE EUROPEAN COMMUNITIES,

Having regard to the Treaty establishing the European Community, and in particular the first subparagraph of Article 88(2) thereof,

Having called on interested parties to submit their comments pursuant to those provisions and having regard to those comments,

Whereas:

I

PROCEDURE

(1) The French authorities notified an aid scheme for adapting the vineyards in Charentes by letter of 3 February 1999, recorded as recieved on 8 February 1999. Requests for further information were sent on 18 March and 14 July 1999. The French authorities replied by letters of 6 May and 28 July 1999.

(2) The Commission initiated the procedure provided for in Article 88(2) of the EC Treaty in respect of the above aid measure by letter No SG (99) D/8176 of 15 October 1999. The procedure was initiated in respect of three of the four measures initially notified by the French authorities. The Commission raised no objections to the measure to supplement the grubbing premium.

(3) The decision to initiate the procedure was published in the Official Journal of the European Communities(1). The Commission called on the other Member States and interested parties to submit their comments on the aid in question. The Commission has received no comments from interested parties. The French authorities sent their comments by letter of 13 December 1999.

(4) On 12 March 1999 and 6 April 2000, without informing the Commission or awaiting completion of the investigation procedure, the French authorities adopted two decrees on the conditions for granting the aid for improving the vine population of wine-growing holdings in the Cognac region for the 1998/1999 and 1999/2000 wine years, respectively(2). The Commission again contacted the French authorities, by letter from the deputy Director-General for Agriculture of 31 May 2000, to inquire whether the supplement to national aid for improving the vine population had actually been implemented. It drew attention to Article 88(3) of the Treaty, which prohibits the implementation of State aid. It also mentioned the principle that aid which is not compatible with the common market is to be recovered. The French authorities sent the abovementioned legislative texts by letter of 28 June 2000, implicitly confirming thereby that the measure had been adopted.

II

DESCRIPTION

(5) The envisaged scheme continues the conversion of the vineyards in Charentes, currently used to produce cognac, to the production of other wines ("local wines"). This scheme is a response to the crisis affecting the sector, which is resulting in a substantial accumulation of stocks.

(6) The conversion is to be effected through four measures intended to promote the production of wine for which there is consumer demand and reduce the volumes of cognac produced.

Supplement to national aid for improving the vine population

The purpose of the aid is to improve the quality of the vineyards. The measure edncourages cognac producers to switch to "local wine" production by promoting the use of certain vine varieties(3). The measure would cover only 1000 hectares of vineyards.

The estimated budget is FRF 10000000 (EUR 1524000) and the aid would be granted in the form of an additional payment of FRF 10000/ha (EUR 1524) to wine-growers alreade eligible for national aid for improving the vine population.

The aid would be granted for one year, the French authorities having indicated that the multiannual character of the measure would not be endorsed until an assessment had been made at the end of the first year of operation.

The level of aid would be as follows:

- FRF 24000/ha for wine-growers delivering their entire production to a producer group acting as a marketing consortium or a wine-growers' cooperative belonging to such a group. The aid supplement would increase the total amount of aid to FRF 34000/ha,

- FRF 22000/ha for wine-growers delivering part of their production to a wine-growers' cooperative belonging to a producer group recognised as a marketing consortium or belonging to an association of producer groups or a vineyard-restructuring association. The aid supplement would increase the total amount of aid to FRF 32000/ha,

- FRF 10000/ha to other wine-growers. The aid supplement would increase the total amount of aid to FRF 20000/ha.

Technical support for producers

This measure is designed to accompany the measure described above and consists in helping wine-growers to adapt their production methods by means of a programme of events and training initiatives focusing on the conversion of vineyards. Under this programme, information meetings would be organised, booklets would be distributed and experts would dispense advice on growing and wine-making techniques. The estimated budget amounts to FRF 5000000 (EUR 762000).

Promotion of cognac

These measures are intended to halt the disappearance of outlets for cognac by promoting the product. They include the organisation of fairs and exhibitions, public relations events and publicity compaigns. They will mainly be held in third countries, particularly in Asia and America. The estimated budget amounts to FRF 5000000 (EUR 762000) for 1999.

Supplements to the grubbing premium

These are structural measures to reduce cognac production capacity in the Charentes region.

(7) Turning to the supplement to national aid for improving the vine population, when the examination procedure was initiated for the notified measures the Commission took the view that Article 14 of Council Regulation (EEC) No 822/87 of 16 March 1987 on the common organisation of the market in wine(4), as amended by Regulation (EEC) No 2253/88(5), prohibits the grant of national aid for the planting of wine-growing areas from 1 September 1988, except where such aid contains criteria to ensure, in particular, that the objective of reducing production or improving quality is achieved without leading to increased production. Accordingly, only varieties which bring about an improvement in quality and to not have high productivity in the terrain concerned will be allowed. The varieties communicated to the Commission by the French authorities met these conditions. Moreover, the total amount of aid would not exceed the ceiling laid down in Commission Regulation (EEC) No 2741/89(6), which stipulates that the amount of aid granted per hectare of vineyard planted may not exceed 30 % of the actual cost of grubbing-up and planting, which may be determined on a flat-rate basis in each region, particularly in the light of geomorphological characteristics.

(8) However, the new Council Regulation (EC) No 1493/1999 of 17 May 1999 on the common organisation of the market in wine(7) contains provisions on the abandonment of wine-growing areas and the restructuring and conversion of vineyards. Since the programme presented by the French authorities seeks a long-term solution to the problem of wine production in the Charentes region, the measures envisaged must take account of the new rules under this common organisation of the market. This Regulation establishes a system for the restructuring and conversion of vineyards, the objective of which is to adapt production to market demand. In accordance with Article 15(c) of Regulation (EC) No 1493/1999, Commission Regulation (EC) No 1227/2000 of 31 May 2000 laying down detailed rules for the application of Council Regulation (EC) No 1493/1999 on the common organisation of the market in wine(8)...