Draining the EU Wine Surplus
Draining the EU Wine Surplus
Jun 15, 2012 6
(WSJ) - A storm in a decanter is emerging in Brussels over the European Union’s policy on winegrowing that is pitting EU institutions, national governments, and farmers against one another.
A report this week from the European Court of Auditors sharply criticized many aspects of the European Commission’s viticulture policy, which was designed both to combat the EU’s enormous wine surplus and encourage the production of grapes that are more saleable overseas.
To help farmers compete more efficiently in the world wine market, the commission’s agriculture unit awarded funds to help many of them restructure and upgrade their vineyards to the latest winegrowing standards. Simultaneously, other farmers could apply for a program that would pay them to “grub up,” or remove their vines from the ground, to reduce the size of the surplus.
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