Wine, more flexibility and simplification in EU crisis funds
In the 300 million European package, clarity on new digital labels and rules on the use of promotion funds, which now also cover wine tourism
Key points
Strong simplification of wine labelling rules, flexibility in the use of EU funds for competitiveness measures such as promotion abroad or vineyard restructuring. Introduction of wine tourism, which is growing strongly in Italy, among the activities that can be financed with EU funds. But some doubts remain on the regulatory framework of the new deal wines.
These, in short, are the novelties introduced by the 'Wine Package' on which agreement was reached last week in the Trilogue between the European Commission, the EU Council and the European Parliament. Thus from Europe came, and for once, a timely response to the requests of European wine producers grappling with a difficult market phase between falling consumption trends and tariffs introduced by the US.
Give way to digital labelling
A decisive step forward has been taken on the so-called 'digital label'. After years of debates between member countries on whether or not to indicate ingredients and nutritional information on labels, it has finally been decided to focus on a pictogram (probably the letter 'i' will be chosen, but this is still to be defined) and on the Qr code, referring the consumer to the digital consultation and thus avoiding a dangerous 'bugiardino effect' for wine labels. This also avoids having to translate the information on the label into different languages. The new rules will apply as much to wines marketed in the EU market as to those exported outside the EU.
More modular contributions
Another measure of great importance for businesses concerns the flexibility and greater intensity of contributions introduced by the wine package on support measures for the sector that can be financed with EU funds. It should be remembered that Italy receives an average of around EUR 300 million each year under the Wine CMO to co-finance measures such as wine promotion on the markets, vineyard restructuring, and technological investments in the cellar.
Until now, EU co-financing covered up to 50% of the investment. This percentage will now rise to 60% but can go upto 80% if the measures (such as vineyard restructuring or investments in the winery)encourage farm adaptation to climate change.
