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EU Approves Recommendations for the Future of the Wine Sector Amid Industry Challenges

by Kaia

Brussels, December 16, 2024 — The European Union has formally approved the Political Recommendations for the Future of the EU Wine Sector, a comprehensive plan designed to address the evolving challenges facing the industry. The document, created by the High-Level Group on the Future of the Wine Sector, was endorsed in a meeting chaired by Christophe Hansen, the new European Commissioner for Agriculture and Food. The discussions brought together representatives from the European Commission and member states to tackle the sector’s structural issues, particularly in light of market changes, climate impacts, and shifting consumer preferences.

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The recommendations emphasize the critical role the wine industry plays in the European economy, especially in rural areas where it supports jobs and fosters local development. Wine is also recognized as a key element of European cultural heritage and identity, with its international reputation contributing to the continent’s soft power. However, the document acknowledges several challenges, including a decade-long decline in consumption and production instability caused by extreme weather events linked to climate change.

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A central focus of the recommendations is the management of production capacity within the EU. While vineyard acreage has slightly decreased between 2015 and 2023, some regions continue to face overproduction concerns. To address this, the document proposes vineyard removal programs in areas where production exceeds demand. These initiatives would prioritize vineyards of high landscape value, those on slopes or terraces, and varieties with significant environmental or genetic importance. Additionally, the guidelines call for greater flexibility in planting authorizations, allowing member states to manage vineyard expansion according to regional market needs.

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The recommendations also outline several measures to enhance crisis management in the sector. Notably, the document advocates for redirecting unused sectoral budgets toward emergency responses, ensuring that these actions maintain economic stability and protect jobs in wine-producing areas.

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On the issue of climate change resilience, the recommendations call for targeted support for winegrowers, who are increasingly vulnerable to extreme weather patterns. The European Commission is urged to improve risk management tools within the Common Agricultural Policy (CAP), such as expanding insurance schemes and mutual funds to mitigate losses. The recommendations also include proposals to update compensation rules for climate-related damages and to require sector-wide adaptation plans that are consistent with ongoing market support and vineyard restructuring programs. Investments in climate-resilient technologies and research into new cultivation techniques are identified as key priorities.

Furthermore, the document examines changing market dynamics and emerging commercial opportunities. It highlights the importance of the EU Wine Market Observatory in monitoring and analyzing market trends and calls for enhanced analytical capacity to better understand demand shifts both in traditional markets and in new export regions. The recommendations suggest revising regulations around winemaking practices and labeling, to accommodate evolving consumer preferences, such as the growing demand for partially dealcoholized and low-alcohol wines, while maintaining the high standards and reputation of European wines.

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