In a report published on September 25, the European Court of Auditors has raised concerns about the effectiveness of the European Union’s (EU) wine policy, highlighting its shortcomings in environmental objectives and competitiveness support for the wine sector.
According to the European Court of Auditors, the EU’s wine policy has not adequately addressed environmental concerns and has failed to directly enhance the competitiveness of the wine industry. The EU wine sector, which receives significant regulatory support, has been allocated approximately €500 million in EU funding annually to facilitate vineyard restructuring and enhance competitiveness.
Since 2016, wine growers have had the option to request authorization for planting additional vines, aiming to allow controlled production growth (up to a maximum yearly increase of one percent) while preventing oversupply.
Joëlle Elvinger, the ECA member leading the audit, emphasized the importance of balancing competitiveness with improved environmental sustainability, noting that the EU’s actions are yet to fully deliver on either objective.
In practice, however, the auditors found that the EU’s wine policy has made limited contributions to environmental sustainability. For example, the restructuring measure has not been effectively directed towards climate and environmental impact reduction projects. Additionally, the annual one percent increase in vineyard areas, extended until 2045, has never been assessed from an environmental perspective.
Looking ahead, the European Court of Auditors noted that the new common agricultural policy (CAP) continues to have limited environmental ambitions for the wine sector. In the new CAP, payments to farmers, including wine growers, are no longer explicitly tied to environmental requirements. Moreover, EU member states are only required to allocate a minimum of five percent of the funds designated for the wine sector to climate change, environment, and sustainability actions—an allocation that the auditors consider relatively low.
These findings highlight the need for greater alignment between EU wine policy and environmental objectives to ensure a more sustainable and competitive future for the sector.
