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AGRICULTURE : THE FIGURES IN THE DRAFT REFORM OF THE WINE OCM.

The new common organisation of the market in wine, according to the draft reform of the EU's AgricultureaCommissioner Mariann Fischer Boel, which the Commission is to submit on 4 July, is set to have a budget of around 1.3 thousand million euros, a large part of which (623 million euros in 2009) will be distributed among the various wine-producing member states to support the sector (eg restructuring, redevelopment, promotion, etc.) within national budgets.

The budgets will be set at 623 million euros in the first year and will be progressively increased to reach 830 million euros from 2014. Three criteria have been adopted to calculate their distribution among the seventeen producing Member States, namely, area, production and expenditure on a historical basis, giving each of them a weighting of one sixth for the first two and two thirds for the third. On this basis, Spain, the leading beneficiary, would obtain 31.5% of the total budget (196 million in 2009 and 261 million in 2014). Then would come Italy with 26.7% of the budget (166 million in 2009 and 222 million in 2014) and France with 23.2% (144 million in 2009 and 193 million in 2014).

Each member state, within its budget, would be obliged to undertake wine promotion and marketing operations aimed at third countries. An annual budget of 120 million euros would be devoted to such actions. The financing of these programmes would be proportional to national budgets. The annual contribution would be 37.8 million for Spain, 32.1 million for Italy and 27.9 million for France. The promotion operations would be 50% co-financed by the EU.

The Commission is, moreover, intending to propose the transfer of part of the funding of the first OCM pillar (market support) to the second pillar (rural development) in order to subsidise a whole range of measures (establishing young wine growers, improvements at the technical and marketing levels, training, information and promotion support for producing organisations which have opted for a plan to increase quality, agri-environmental actions to cover additional costs resulting from respectful cultivation of the countryside, early retirement for wine growers transferring their activities to other producers). Such transfers would be progressively increased from 100 million in 2009 to 400 million from 2014.

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Title Annotation:Organization for Competitive Markets
Publication:European Report
Geographic Code:4E
Date:Jul 3, 2007
Words:379
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