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    Tuesday 07/12/2021
    Fondo Español de Garantía Agraria O.A.
    CONSULTA DE ASIGNACIÓN
    DE DERECHOS DE PAGO BÁSICO
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    Tuesday 07/12/2021
    Fondo Español de Garantía Agraria O.A.
    PAC 2021-2023
    CAMPAÑA DE PUBLICIDAD 2021

Wine sector

Common organisation of the agricultural markets. Wine sector
Photo of red grapes

Current regulation on the wine sector is included in Regulation (EU) No 1308/2013 of the European Parliament and of the Council. of 17 December 2013, establishing a common organisation of agricultural product markets, and repealing Regulations (EEC) No 922/72, (EEC) No 234/79, (EC) No 1037/2001 and (EC) No 1234/2007.

Section 4 of the Regulation mentioned above describes the five-year support programmes for the wine sector, which have financial resources for each member state, charged to the European Agricultural Guarantee Fund (EAGF). This EU regulation represented a change in the support measures available to the wine sector, as it eliminated the traditional regulation measures and replaced them with a more ambitious series of measures. Each member state selects, from the eligible measures, those that it wishes to finance, thus setting up its own Support Programme with a view to adapting the programme to its own specific circumstances.

The Programme's implementing regulations are:

Commission Delegated Regulation (EU) 2016/1149 of 15 April 2016 supplementing Regulation (EU) No 1308/2013 of the European Parliament and of the Council, as regards national support programmes in the wine sector and amending Commission Regulation (EC) No 555/2008.

Commission Implementing Regulation (EU) 2016/1150, of 15 April 2016, laying down the rules for the application of Regulation (EU) No 1308/2013 of the European Parliament and of the Council, as regards the national support programmes in the wine sector.

The 2019-2023 Programme is currently in force, known in Spain as the Support Programme for the Spanish Wine Sector (Programa de Apoyo al Sector Vitivinícola Español, PASVE) 2019-2023, developed through Royal Decree 5/2018, of 12 January, for the implementation of the measures of the 2019-2023 support programme for the Spanish wine sector, and Royal Decree 1363/2018, of 2 November, for the implementation of the measures of the 2019-2023 support programme for the Spanish wine sector.

As part of the management of each of the Plan’s measures, the Ministry of Agriculture, Fisheries and Food, the Spanish Agrarian Guarantee Fund O.A. (FEGA) and the autonomous regions all participate within their remits.

The critical role of FEGA is to coordinate the autonomous regions’ paying agencies depending on the way that the payment of these subsidies are managed and controlled. In this regard, it collaborates with the autonomous regions in providing guidance to those receiving subsidies so that they fulfil their responsibilities as regards adequately justifying the costs eligible for subsidies. Furthermore, in the case of the measure for the promotion of wine in third countries, FEGA currently acts as the paying agency.

 

The most important aspects of the wine sector

The Spanish wine sector support programme for 2019-2023 is currently in force.

The financing measures in Spain include:

Promotion of wine in third countries:for information or promotion measures for wines from the European Union in the Member States, aimed at informing consumers about responsible wine consumption and the systems of designations of origin and geographical indications of the Union, or in the third countries, in order to improve their competitiveness.

Restructuring and conversion of vineyards:the measure is aimed at increasing the competitiveness of wine producers and is coordinated through subsidies for three operations: the replanting of vineyards, varietal conversion and improvements in vineyard management techniques. Wine producers or future wine producers whose vineyards are dedicated to growing grapes for wine-making are the target audience of this measure.

  • Coordination circular 34/2018. General Control Plan for aid for the restructuring and conversion of vineyards in application of Royal Decree 5/2018
  • Coordination circular 21/2019. General Control Plan for aid for the restructuring and conversion of vineyards in application of Royal Decree 1363/2018
  • Coordination circular 41/2020. General Control Plan to support the restructuring and reconversion of vineyards pursuant to Royal Decree 1363/2018, amended by Royal Decree 608/2019, Royal Decree 558/2020 and Royal Decree 617/2020.
  • Coordination circular 18/2021. General Control Plan to support the restructuring and reconversion of vineyards pursuant to Royal Decree 1363/2018, amended by Royal Decree 608/2019, Royal Decree 558/2020, Royal Decree 137/2020, Royal Decree 617/2020 and Royal Decree 283/2021.

Investments:aimed at improving the overall performance of companies and their adaptation to the market demands, as well as increasing their competitiveness, and the sale and market positioning of vine-growing products produced in Spain. Subsidies are granted to vine-growing companies and/or wineries, in addition to their associations for the production and/or sale of wine, must or vinegar. Subsidies may be granted for tangible or intangible investments in processing facilities and wine infrastructure, as well as in marketing structures and instruments.

Distillation of by-products:the aim of the measure is to promote compliance with the EU obligation to eliminate the by-products generated during the transformation of grapes grown for wine-making in Spain before the end of the wine year in which they were produced with respect for the environment. Subsidies are granted to distilleries authorised by the autonomous regions. The alcohol obtained must have a minimum alcohol content of 92% in volume and can only be used for industrial purposes or in the production of energy.

List of authorised distillers. 2021-2022 campaign

  • Coordination circular 27/2019. National Plan to control the measurement of distillation of by-products pursuant to Royal Decree 1363/2018
  • Coordination circular 30/2019. Amendment to Circular 27/2019 National Plan to control the measurement of distillation of by-products pursuant to Royal Decree 1363/2018.

Green harvesting: The aim of the measure is to avoid a crisis in the wine market and to restore the balance between supply and demand. The measure consists of the destruction or total elimination of unripe bunches of grapes from a plot intended for the production of wine grapes. The measure is only implemented if, before 15 January each year, an Autonomous Community sends a duly justified request for its application to the Directorate-General of Agricultural Productions and Markets of the Ministry of Agriculture, Fisheries and Food, which, after undertaking a market analysis, may decide to grant aid for green harvesting in part or all of the national territory. This resolution shall be published before 30 January of that year, by means of a resolution to be published in the Official State Gazette.

 

Extraordinary measures in the wine sector in 2020

As part of the measures adopted to overcome the crisis caused by the COVID-19 pandemic, Royal Decree 557/2020, of 9 June, adopts extraordinary measures for the wine sector to overcome the crisis caused by the COVID-19 pandemic, and sets regulations for trading in the wine sector, in addition to amending the regulation on compulsory declarations in the wine sector and the wine sector aid programme, the aim of which was to remove wine from the market in order to rebalance supply and demand.

The extraordinary measures implemented in Spain were as follows:

  • Crisis distillation, through the distillation of 2,000,000 hectolitres of wine in bulk with a minimum alcoholic strength of 11% by volume produced on national territory, in the 2019-2020 wine year. The alcohol obtained could only be used for industrial purposes.
  • Voluntary private storage of 2,250,000 hectolitres of wine covered by a geographical indication.
  • Green harvest for 2020 vintage

The green harvesting measure is covered as eligible under the PASVE, but has never been implemented before, while the crisis distillation and private storage measures for wine were included as eligible under the national programmes, and exceptionally for 2020, through Commission Delegated Regulation (EU) 2020/592, of 30 April 2020 laying down temporary exceptional measures derogating from certain provisions of Regulation (EU) No 1308/2013 of the European Parliament and of the Council to address the market disruption caused by the COVID-19 pandemic in the fruit and vegetables and wine sectors and related measures

Legislation amending the basic legislation of the programme

* Basic EU regulation

  • Commission Delegated Regulation (EU) 2018/273, of 11 December 2017, supplementing Regulation (EU) No 1308/2013 of the European Parliament and of the Council as regards the scheme of authorisations for vine plantings, the vineyard register, accompanying documents and certification, the inward and outward register, compulsory declarations, notifications and publication of notified information, and supplementing Regulation (EU) No 1306/2013 of the European Parliament and of the Council as regards the relevant checks and penalties, amending Commission Regulations (EC) No 555/2008, (EC) No 606/2009 and (EC) No 607/2009, and repealing Commission Regulation (EC) No 436/2009 and Commission Delegated Regulation (EU) 2015/560.
  • Commission Implementing Regulation (EU) 2018/274, of 11 December 2017, laying down rules for the application of Regulation (EU) No 1308/2013 of the European Parliament and of the Council as regards the scheme of authorisations for vine plantings, certification, the inward and outward register, compulsory declarations and notifications, and of Regulation (EU) No 1306/2013 of the European Parliament and of the Council as regards the relevant checks, and repealing Commission Implementing Regulation (EU) 2015/561,
  • Commission Implementing Regulation (EU) 2020/132, of 30 January 2020, laying down an emergency measure in the form of a derogation from Article 45(3) of Regulation (EU) No 1308/2013 of the European Parliament and of the Council as regards Union contribution to the promotion measure in the wine sector.
  • Commission Delegated Regulation (EU) 2020/419, of 30 January 2020, derogating from Delegated Regulation (EU) 2016/1149 and supplementing Regulation (EU) No 1308/2013 of the European Parliament and of the Council as regards the national support programmes in the wine sector.
  • Commission Implementing Regulation (EU) 2020/532 of 16 April 2020 derogating in respect of the year 2020 from Implementing Regulations (EU) No 809/2014, (EU) No 180/2014, (EU) No 181/2014, (EU) 2017/892, (EU) 2016/1150, (EU) 2018/274, (EU) 2017/39, (EU) 2015/1368 and (EU) 2016/1240 as regards certain administrative and on-the-spot checks applicable within the common agricultural policy.
  • Commission Delegated Regulation (EU) 2020/592 of 30 April 2020 setting temporary exceptional measures derogating from certain provisions of Regulation (EU) No 1308/2013 of the European Parliament and of the Council to address the market disruption caused by the COVID-19 pandemic in the fruit and vegetables and wine sectors and related measures.
  • Commission Implementing Regulation (EU) 2020/600 of 30 April 2020 derogating from Implementing Regulation (EU) 2017/892, Implementing Regulation (EU) 2016/1150, Implementing Regulation (EU) 615/2014, Implementing Regulation (EU) 2015/1368 and Implementing Regulation (EU) 2017/39 regarding certain measures to address the COVID-19 pandemic crisis
  • Commission Delegated Regulation (EU) 2020/884 of 30 May 2020 derogating for the year 2020 from Commission Delegated Regulation (EU) 2017/891 regarding the fruit and vegetables sector and from Commission Delegated Regulation (EU) 2016/1149 as regards the wine sector due to the COVID-19 pandemic
  • Commission Delegated Regulation (EU) 2020/1275 of 06 July 2020 amending Delegated Regulation (EU) 2020/592 setting temporary exceptional measures derogating from certain provisions of Regulation (EU) No 1308/2013 of the European Parliament and of the Council to address the market disruption caused by the COVID-19 pandemic in the fruit and vegetables and wine sectors and related measures.
  • Commission Implementing Regulation (EU) 2021/78 of 27 January 2021 amending Commission Implementing Regulation (EU) 2020/600, derogating from Implementing Regulation (EU) 2017/892, Implementing Regulation (EU) 2016/1150, Implementing Regulation (EU) 615/2014, Implementing Regulation (EU) 2015/1368 and Implementing Regulation (EU) 2017/39 regarding certain measures to address the COVID-19 pandemic crisis.
  • Commission Delegated Regulation (EU) 2021/95 of 28 January 2021 amending Delegated Regulation (EU) 2020/592, setting temporary exceptional measures derogating from certain provisions of Regulation (EU) No 1308/2013 of the European Parliament and of the Council to address the market disruption caused by the COVID-19 pandemic in the fruit and vegetables and wine sectors and related measures.
  • Commission Delegated Regulation (EU) 2020/374 of 27 January 2021 amending Delegated Regulation (EU) 2020/884, derogating for the year 2020 from Commission Delegated Regulation (EU) 2017/891 regarding the fruit and vegetables sector and from Commission Delegated Regulation (EU) 2016/1149 as regards the wine sector due to the COVID-19 pandemic.

 

*National regulation

  • Royal Decree 608/2019, of 25 October, amending Royal Decree 1363/2018, of 2 November, for the implementation of measures under the 2019-2023 support programme for the wine sector.
  • Royal Decree 558/2020, of 9 June, amending the royal decrees that establish basic regulations for the implementation of EU regulations on fruit and vegetables and vine-growing.
  • Royal Decree 617/2020, of 30 July, amending Royal Decree 1363/2018, of 2 November, for the implementation of measures under the 2019-2023 support programme for the wine sector.

*FEGA Coordination Circulars

  • Coordination circular 35/2019. Coordination criteria for the administration and control of subsidies for the promotion of wine in third countries (Replaces Circular 31/2019)

  • Coordination circular 44/2020. Completion of the annual report on controls carried out on measures for the restructuring and conversion of vineyards, investments, distillation of by-products and green harvesting.

  • Coordination Circular 45/2020. Completion of the Annual Report on controls carried out on crisis distillation and private storage measures for wine

Modification date: 26/08/2021

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