EU: Invest in the Future, Not in Downsizing

EU: Invest in the Future, Not in Downsizing


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The support from the EU should aim to strengthen both "wine operators’ competitiveness and capacity to adapt to markets demand" as well as  the "resilience to climate change with adaptation and mitigation measures", stated the CEEV. The committee suggests focusing on several key areas.
 

Simplify, liberalise—and certify sustainability?
The EU should simplify administrative procedures, particularly in marketing measures, to allow greater flexibility in national programs. Additionally, labeling regulations need to be revised so that product information can be made available digitally without necessarily being included on the label. Furthermore, the CEEV calls for simplified EU regulations on e-commerce, fewer trade barriers for imports and exports, and an updated legal framework for (partially) de-alcoholized products. Moreover, the EU should establish general principles for sustainable production and communication. This could be interpreted as a call for an EU sustainability certification.

The CEEV is very sceptical about EU subsidies aimed primarily at reducing production, such as subsidies for "green harvesting" or vineyard grubbing-up premiums.

"If public funds were to be allocated for such actions, strict conditions must be applied," demands Ignacio Sánchez Recarte, Secretary General of the CEEV.

"The future of the EU wine sector rests with operators who are committed to its sustainability and development, and EU policies should focus on them and prioritise their needs," says CEEV President Mauricio Gonzáles-Gordon.
 

The wine industry contributes €130 bn to the EU's gross domestic product (GDP). While it represents only 0.8% of the EU’s total GDP, it accounts for almost half (47.9%) of the entire EU primary sector, including agriculture, forestry and fisheries.  

  What's driving wine's structural decline?


Germany: Industry Appeals to the Ministry of Agriculture 
Organisations in Germany are also critically monitoring EU policies. In a statement to the German Federal Ministry for Food and Agriculture (BMEL), the Chamber of Industry and Commerce (IHK) of Trier has raised concerns. It has called for simplified funding and promotional measures to make national support programs more efficient and flexible. The IHK emphasizes the importance of supporting exports to non-EU countries, as well as the EU's internal market.

To reduce marketing costs, the IHK recommends harmonising regulations, simplifying rules, and promoting digitalization.

"There is an urgent need for action both in Brussels and at the national level," says IHK Managing Director Albrecht Ehses. Furthermore, EU policy must recognize wine as a cultural asset and make a clear distinction between moderate wine consumption and alcohol abuse. 

The wine industry contributes €130 bn to the EU's gross domestic product (GDP). While it represents only 0.8% of the EU’s total GDP, it accounts for almost half (47.9%) of the entire EU primary sector, including agriculture, forestry and fisheries.

Around €52bn in tax revenue is generated from the sector every year, with only 5% of this coming from wine-specific taxes, according to the Committee of European Wine Companies (CEEV), citing a study by PricewaterhouseCoopers Asesores de Negocios (PwC) from 2022.

The profitability of wine producers exceeds that of other agricultural businesses by 15%, and the total value of wine exports from the EU to third countries amounts to almost €18bn.

According to the same report, the wine industry is an enormously important employer, particularly in rural areas, generating 2.9m jobs, or 1.4% of total EU employment. Rural regions where vineyards are increasing also see an accompanying increase in population, compared to regions where vineyards are decreasing.

“A blessing against rural exodus,” says Mauricio González-Gordon, President of the CEEV.

Wine tourism also brings people to rural regions, with 36m wine tourists a year generating an annual turnover of around €15bn. The PwC study defines wine tourists as people who have visited areas with vineyards and are looking for "wine-related experiences". As well as spending money on wine and winery visits, tourists also generate income in other ways; only €1.1bn was generated by visits to wineries and wine museums in 2022.