BELGIUM: Wine grubbing up row hits European Commission

By | 13 June 2012

Could vine grubbing-up subsidies in the EU have been set too high?

Could vine grubbing-up subsidies in the EU have been set too high?

A public row has broken out between the European Commission and the European Union’s financial watchdog over whether the European Community wasted money by simultaneously funding the grubbing up and improvement of vineyards in the region.

In a report released yesterday (12 June), the EU Court of Auditors criticised the “tension” between the two policies, where “increases in yields … from restructuring … partially off-set the effects of grubbing-up”. The court also said that it felt money was wasted: Between 2007 and 2009, EUR1.07bn (US$1.34bn) was spent on grubbing up, while improvements drew on a EUR4.2bn budget from 2001 to 2010.

Grubbing up “aid rates were set at too high levels,” said the court.

Responding, the Commission’s agriculture spokesman Roger Waite argued that the two policies were complimentary, in that one funded the removal of poor wine production while the other made way for high quality vines yielding export sales.

The aim of the reform was “to enhance … competitiveness,” said Waite, who added that Brussels would not finance more grubbing up.

Expert analysis

Wine in Europe

Wine in Europe industry profile provides top-line qualitative and quantitative summary information including: market share, market size (value and volume 2007-11, and forecast to 2016). The profile also contains descriptions of the leading players including key financial metrics and analysis of competitive pressures within the market. Essential resource for top-line data and analysis covering the Europe wine market. Includes market size and segmentation data, textual and graphical analysis of market growth trends, leading companies and macroeconomic information.

Sectors: Legislation, Wine

View next/previous articles

Currently reading -

BELGIUM: Wine grubbing up row hits European Commission

There are currently no comments on this article

Be the first to comment on this article

just-drinks tagline

Not a member? Join here

Decrease font sizeDecrease font sizeDecrease font size Increase font sizeIncrease font sizeIncrease font size Comment on this article Email this to a friend Print this page