A wide-ranging support plan for the European wine sector has been introduced by the European Commission to address significant challenges faced by producers, including climate change and the need to balance supply and demand. Key proposals include payments for winemakers wishing to conduct green harvesting, promotional support for wine exports, and increased investment for wineries adapting to climate change.
The support plan also aims to standardize labeling for alcohol-free wines, introducing terms such as ‘alcohol-free’ for products with an alcohol content not exceeding 0.5% ABV, and ‘alcohol-light’ for those slightly above the threshold but substantially lower than typical levels.
Despite the Commission’s efforts, there are growing concerns regarding deteriorating trade relations with the US, particularly the threat of punitive tariffs on wines and spirits. Ignacio Sánchez Recarte, secretary-general of the Comité Européen des Entreprises Vins (CEEV), emphasized that the support package would be inadequate if a trade war with the US escalates.
US President Trump has threatened to impose a staggering 200% import tariff on European wines and spirits, leading to fears among importers who have already ceased shipments. This situation has resulted in significant financial losses, amounting to approximately €100 million per week for EU wine companies.
Addressing the ongoing strain in the wine sector, the European Commission stated that this new support initiative is crucial for maintaining competitiveness in the industry. The EU has intervened in the wine sector before, particularly during a crisis in 2008 that prompted the uprooting of vines to combat overproduction and declining demand.
The Commission highlighted the cultural and economic significance of the EU wine sector, noting its vital role in rural economies, traditions, gastronomy, and tourism within Europe.
For further details, you can read more about related initiatives: