The European Commission today called for a root-and-branch reform of the Common Market Organisation for wine. The plan aims to increase the competitiveness of EU wine producers, strengthen the reputation of EU wines, win back market share, balance supply and demand and simplify the rules, while preserving the best traditions of EU wine production and reinforcing the social and environmental fabric of rural areas.

The Commission considers four options for reform, and comes out clearly in favour of a radical reform model specific to the wine sector. This would involve either a one-step or a two-step approach. The two-step approach would begin with measures to bring supply and demand back into balance before focusing on improving competitiveness, including the abolition of the system of planting rights. Producers would be offered generous incentives to grub up uneconomic vineyards, outdated market support measures such as distillation would be abolished and the systems of labelling and wine-making practices would be updated and simplified. Money would be redirected towards Rural Development measures tailor-made for the wine sector and Member States would receive a national financial envelope to pay for measures decided at national level. Under the "one-step" variant, the system of planting rights restrictions would be either allowed to expire on 1 August 2010, or be abolished immediately, and the current grubbing-up scheme would also be abolished at the same time.

After an in-depth debate on its ideas, the Commission plans to table legislative proposals in December 2006 or January 2007.