EU attacking French AOC system
EU Agricultural Commissioner Mariann Fischer-Boel unveiled her plan for a European-wide reform of the wine industry. The state of the industry is such that urgent measures are required. The annual surplus of wine production in the EU equals 1.3 times of California's or 2.2 times Australia's entire annual wine output. No doubt member states, especially France, see the situation entirely different. As usual the French government will opt for throwing more money at a problem in exchange for minor reforms. After the riots in the Banlieus, the CPE disaster and violent protest by vintners against restrictions on advertising alcoholic beverages this proposal must be highly unwelcome. It goes to the heart of the cherished A.O.C. system (Appellation d'Origine Contrôlée). Never mind that even the French consumer is baffled by this complicated system.
The main points of the proposal are:
- remove 400,000 hectares of vineyards (roughly 11% of EU total) over 5 years at a total cost of Euro 2,4 million.
- allow to a limited extent the mixing of European and non-European wines
- eliminate minimum alcohol content rules
- reduce chaptalisation (increase of alcohol content in the early stages of fermentation by adding sugar) currently allowed for certain regions from 4% to 2%
- simplify labelling rules (more focus on wineries less on official classifications)
- abolish the annual subsidies for distillation and market support (Euro 500 million)
A vicious battle is preprogrammed. The proposal will undermine the AOC system - from France's point of view it should be introduced in all of Europe! The Germans will fight the chaptalisation reduction. Italians will probably agree but do what they want anyway. The French government will play for time - at least until after the April 2007 Presidential elections. Taking on the interest groups is suicidal in France, as both centrist and socialist governments have found out in the past. Apparently it has to get a lot worse before meaningful reforms can be achieved - not only in the wine industry. Vive l'inertie!
