This Section lays down the rules governing the attribution of Union funds to Member States and the use of those funds by Member States through five-year national support programmes ("support programmes") to finance specific support measures to assist the wine sector.
1.Support programmes shall be compatible with Union law and shall be consistent with the activities, policies and priorities of the Union.
2.Member States shall be responsible for support programmes and shall ensure that they are internally consistent and that they are drawn up and implemented in an objective manner, taking into account the economic situation of the producers concerned and the need to avoid unjustified unequal treatment of producers.
3.No support shall be granted for:
(a)research projects and measures to support research projects other than those referred to in points (d) and (e) of Article 45(2);
(b)measures contained in Member States' rural development programmes under Regulation (EU) No 1305/2013.
[X11. Each producer Member State listed in Annex VI shall submit to the Commission a draft five-year support programme containing at least one of the eligible measures set out in Article 43.]
2.The support measures in the draft support programmes shall be drawn up at the geographical level which the Member State considers most appropriate. The Member State shall consult the competent authorities and organisations at the appropriate territorial level on the draft support programme before submitting it to the Commission.
3.Each Member State shall submit a single draft support programme, which may take into account regional particularities.
4.Support programmes shall become applicable three months after the submission of the draft support programme to the Commission.
However, the Commission may adopt implementing acts establishing that the submitted draft support programme does not comply with the rules laid down in this Section, and shall inform the Member State thereof. In such a case, the Member State shall submit a revised draft support programme to the Commission. The revised support programme shall become applicable two months after the submission of the draft revised support programme unless an incompatibility persists, in which case this subparagraph shall apply.
Those implementing acts shall be adopted without applying the procedure referred to in Article 229(2) or (3).
5.Paragraph 4 shall apply mutatis mutandis to changes in respect of applicable support programmes submitted by Member States.
Editorial Information
X1 Substituted by Corrigendum to Regulation (EU) No 1308/2013 of the European Parliament and of the Council of 17 December 2013 establishing a common organisation of the markets in agricultural products and repealing Council Regulations (EEC) No 922/72, (EEC) No 234/79, (EC) No 1037/2001 and (EC) No 1234/2007 (Official Journal of the European Union L 347 of 20 December 2013).
Support programmes shall include at least the following elements:
a detailed description of the measures proposed, as well as their quantified objectives;
the results of consultations held;
an appraisal showing the expected technical, economic, environmental and social impact;
a schedule for implementing the measures;
a general financing table showing the resources to be deployed and the envisaged indicative allocation of the resources between the measures in accordance with the budgetary limits provided for in Annex VI;
the criteria and quantitative indicators to be used for monitoring and evaluation as well as the steps taken to ensure that the support programmes are implemented appropriately and effectively; and
the designation of competent authorities and bodies responsible for implementing the support programme.
Support programmes may contain only one or more of the following measures:
promotion, in accordance with Article 45;
restructuring and conversion of vineyards, in accordance with Article 46;
green harvesting, in accordance with Article 47;
mutual funds, in accordance with Article 48;
harvest insurance, in accordance with Article 49;
investments, in accordance with Article 50;
innovation in the wine sector, in accordance with Article 51;
by-product distillation, in accordance with Article 52.
1.The available Union funds shall be allocated within the budgetary limits provided for in Annex VI.
2.Union support shall only be granted for eligible expenditure incurred after the submission of the relevant draft support programme.
3.Member States shall not contribute to the costs of measures financed by the Union under the support programmes.
1.Support under this Article shall cover information or promotion measures concerning Union wines:
(a)in Member States, with a view to informing consumers about the responsible consumption of wine and about the Union systems covering designations of origin and geographical indications; or
(b)in third countries, with a view to improving their competitiveness.
2.The measures referred to in point (b) of paragraph 1 shall apply to wines with a protected designation of origin or a protected geographical indication or wines with an indication of the wine grape variety and shall consist only of one or more of the following:
(a)public relations, promotion or advertisement measures, in particular highlighting the high standards of the Union products, especially in terms of quality, food safety or the environment;
(b)participation at events, fairs or exhibitions of international importance;
(c)information campaigns, in particular on the Union systems covering designations of origin, geographical indications and organic production;
(d)studies of new markets, necessary for the expansion of market outlets;
(e)studies to evaluate the results of the information and promotion measures.
3.The Union contribution to information or promotion measures referred to in paragraph 1 shall not exceed 50 % of the eligible expenditure.
1.The objective of measures relating to the restructuring and conversion of vineyards shall be to increase the competitiveness of wine producers.
2.The restructuring and conversion of vineyards shall be supported if Member States submit the inventory of their production potential in accordance with Article 145(3).
3.Support for the restructuring and conversion of vineyards, which could also contribute to improving sustainable production systems and the environmental footprint of the wine sector, may only cover one or more of the following activities:
(a)varietal conversion, including by means of grafting-on;
(b)relocation of vineyards;
(c)replanting of vineyards where that is necessary following mandatory grubbing up for health or phytosanitary reasons on the instruction of the Member State competent authority;
(d)improvements to vineyard management techniques, in particular the introduction of advanced systems of sustainable production.
The normal renewal of vineyards, which means the replanting of the same parcel of land with the same wine grape variety according to the same system of vine cultivation, when vines have come to the end of their natural life, shall not be supported.
Member States may lay down further specifications, especially as regards the age of the vineyards replaced.
4.Support for the restructuring and conversion of vineyards, including improving vineyard management techniques, may only take the following forms:
(a)compensation to producers for the loss of revenue due to the implementation of the measure;
(b)contribution to the costs of restructuring and conversion.
5.Compensation to producers for the loss of revenue referred to in point (a) of paragraph 4 may cover up to 100 % of the relevant loss and take one of the following forms:
(a)notwithstanding Subsection II of Section IVa of Chapter III of Title I of Part II of Regulation (EC) No 1234/2007 setting out the transitional planting right regime, the permission for old and new vines to coexist until the end of the transitional regime for a maximum period which shall not exceed three years;
(b)financial compensation.
6.The Union contribution to the actual costs of the restructuring and conversion of vineyards shall not exceed 50 %. In less developed regions, the Union contribution to the costs of restructuring and conversion shall not exceed 75 %.
1.For the purposes of this Article, "green harvesting" means the total destruction or removal of grape bunches while still in their immature stage, thereby reducing the yield of the relevant area to zero.
Leaving commercial grapes on the plants at the end of the normal production cycle (non-harvesting) shall not be considered to be green harvesting.
2.Support for green harvesting shall contribute to restoring the balance of supply and demand in the Union wine market in order to prevent market crises.
3.Support for green harvesting may be granted as compensation in the form of a flat rate payment per hectare to be determined by the Member State concerned. The payment shall not exceed 50 % of the sum of the direct costs of the destruction or removal of grape bunches and the loss of revenue related to such destruction or removal.
4.The Member State concerned shall establish a system based on objective criteria to ensure that the green harvesting measure does not lead to compensation of individual wine producers in excess of the ceiling fixed in paragraph 3.
1.Support for the setting up of mutual funds shall provide assistance to producers seeking to insure themselves against market fluctuations.
2.Support for the setting up of mutual funds may be granted in the form of temporary and degressive aid to cover the administrative costs of the funds.
1.Support for harvest insurance shall contribute to safeguarding producers' incomes where there are losses as a consequence of natural disasters, adverse climatic events, diseases or pest infestations.
Insurance contracts shall require that beneficiaries undertake necessary risk prevention measures.
2.Support for harvest insurance may be granted in the form of a Union financial contribution which shall not exceed:
(a)80 % of the cost of the insurance premiums paid for by producers for insurance against losses resulting from adverse climatic events which can be assimilated to natural disasters;
(b)50 % of the cost of the insurance premiums paid for by producers for insurance:
against losses referred to in point (a) and against other losses caused by adverse climatic events;
against losses caused by animals, plant diseases or pest infestations.
3.Support for harvest insurance may be granted if the insurance payments concerned do not compensate producers for more than 100 % of the income loss suffered, taking into account any compensation the producers may have obtained from other support schemes related to the insured risk.
4.Support for harvest insurance shall not distort competition in the insurance market.
1.Support may be granted for tangible or intangible investments in processing facilities and winery infrastructure, as well as marketing structures and tools. Those investments shall be intended to improve the overall performance of the enterprise and its adaptation to market demands, as well as to increase its competitiveness, and shall concern the production or marketing of grapevine products referred to in Part II of Annex VII, including with a view to improving energy savings, global energy efficiency and sustainable processes.
2.Support under paragraph 1 at its maximum rate:
(a)shall apply only to micro, small and medium-sized enterprises within the meaning of Commission Recommendation 2003/361/EC(1);
(b)may, in addition, apply to all enterprises for the outermost regions referred to in Article 349 TFEU and the smaller Aegean islands as defined in Article 1(2) of Regulation (EU) No 229/2013 of the European Parliament and of the Council(2).
For enterprises not covered by Article 2(1) of Title I of the Annex to Recommendation 2003/361/EC with fewer than 750 employees, or with a turnover of less than EUR 200 million, the maximum aid intensity shall be halved.
Support shall not be granted to enterprises in difficulty within the meaning of the Community guidelines on State aid for rescuing and restructuring firms in difficulty(3).
3.The eligible expenditure shall exclude the non-eligible costs referred to in Article 69(3) of Regulation (EU) No 1303/2013.
4.The following maximum aid rates concerning the eligible investment costs shall apply to the Union contribution:
(a)50 % in less developed regions;
(b)40 % in regions other than less developed regions;
(c)75 % in the outermost regions referred to in Article 349 TFEU;
(d)65 % in the smaller Aegean islands as defined in Article 1(2) of Regulation (EU) No 229/2013.
5.Article 71 of Regulation (EU) No 1303/2013 shall apply mutatis mutandis to support referred to in paragraph 1 of this Article.
Support may be granted for tangible or intangible investments aimed at the development of new products, processes and technologies concerning the products referred to in Part II of Annex VII. The support shall be intended to increase the marketability and competitiveness of Union grapevine products and may include an element of knowledge transfer. The maximum aid rates concerning the Union contribution to the support provided under this Article shall be the same as those set out in Article 50(4).
1.Support may be granted for the voluntary or obligatory distillation of by-products of wine making which has been carried out in accordance with the conditions laid down in Section D of Part II of Annex VIII.
The amount of aid shall be fixed per % volume and per hectolitre of alcohol produced. No aid shall be paid for the volume of alcohol contained in the by-products to be distilled which exceeds 10 % in relation to the volume of alcohol contained in the wine produced.
2.The aid shall be paid to distillers that process by-products of winemaking delivered for distillation into raw alcohol with an alcoholic strength of at least 92 % by volume.
Member States may make the granting of support conditional upon the lodging of a security by the beneficiary.
3.The maximum applicable aid levels shall be based on collection and processing costs and shall be fixed by the Commission by means of implementing acts pursuant to Article 54.
4.The relevant aid shall include a lump-sum amount to compensate for the costs of collection of the by-products of winemaking. That amount shall be transferred from the distiller to the producer, where the relevant costs are borne by the latter.
5.The alcohol resulting from the supported distillation referred to in paragraph 1 shall be used exclusively for industrial or energy purposes to avoid distortion of competition.
In order to ensure that Member States' wine support programmes meet their objectives and that there is an efficient and effective use of Union funds, the Commission shall be empowered to adopt delegated acts in accordance with Article 227 establishing:
rules on the responsibility for expenditure between the date of receipt by the Commission of the support programmes and modifications to support programmes, and their date of applicability;
rules on the content of support programmes and the expenditure, administrative and personnel costs and operations that may be included in Member States' support programmes and the conditions for, and the possibility to make, payments through intermediaries in the case of support for harvest insurance provided for in Article 49;
rules on the requirement to lodge a security where an advance payment is made;
rules on the use of terms for the purposes of this Section;
rules on the fixing of a ceiling for expenditure on the replanting of vineyards for health or phytosanitary reasons in accordance with point (c) of the first subparagraph of Article 46(3);
rules on the avoidance of double funding between:
the different operations of a Member State's wine support programme, and
a Member State's wine support programme and its rural development or promotional programmes;
rules under which producers are to withdraw the by-products of winemaking, and on exceptions to that obligation in order to avoid additional administrative burden, and rules for the voluntary certification of distillers;
rules allowing Member States to establish conditions for the proper functioning of support measures in their programmes.
The Commission may adopt implementing acts laying down measures concerning:
the submission of the support programmes, the corresponding financial planning and revision of support programmes;
application, selection and payment procedures;
the submission, format and content of the reports and evaluations of Member States' support programmes;
the fixing, by Member States, of the rates of aid for green harvesting and by-product distillation;
financial management and provisions concerning the application of the support measures by the Member States;
the procedures for, and the amount of, the security to be lodged where an advance payment is made.
Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 229(2).
Commission Recommendation 2003/361/EC of 6 May 2003 concerning the definition of micro, small and medium-sized enterprises (OJ L 124, 20.5.2003, p. 36).
Regulation (EU) No 229/2013 of the European Parliament and of the Council of 13 March 2013 laying down specific measures for agriculture in favour of the smaller Aegean islands and repealing Council Regulation (EC) No 1405/2006 (OJ L 78, 20.3.2013, p. 41).