EU wine investment ‘not justified’

1st July, 2014 by Neal Baker

There is no justification for investment measures specific to the wine sector, according to a report published today by the European Court of Auditors (ECA).

19091_Logo_24LangThe report, conducted by the EU internal spending watchdog, claims that supportive measures for wine growers already exist under the overall EU rural development policy.

It also questions the role of EU grants for the promotion of wines, stating that “they were often used for consolidating markets, rather than winning new markets or recovering old markets”.

“The coexistence of similar investment measures under two different schemes is a source of complexity, which in some Member States has resulted in implementing delays or in an excessively restrictive scope of the eligible investments” claimed Mr Jan Kinšt, the ECA Member responsible for the report.

He continued, “Also, when the EU contribution incites enterprises to proportionally reduce their own funding for promotion actions, it becomes essentially a partial subsidy of these companies’ operational costs.

“This is not an efficient use of public money.”

The European Court of Auditors in Luxembourg

The European Court of Auditors in Luxembourg

The EU auditors found that there is a “lack of sufficient relevant information to show the direct results” of specific investment, and of the effects that were noticed, they “could not be easily separated from rural development investments” according to a statement attached to the report.

In the case of the promotion actions, although wine exports to third countries have significantly increased in absolute terms, the audit claimed that “EU wines have lost market shares in the main third countries targeted by promotion actions and that exports of EU wines not eligible for support also increased.”

Member States spent €522 million (£417 million) in EU funds under the promotion measure between 2009 and 2013. For 2014-2018, there has been a large increase in funds allocated to the Member States for this measure: €1.16 billion (£926 million).

There were apparent difficulties experienced by the Member States in spending the 2009-2013 budget initially earmarked for promotion actions, and so the ECA claim there is a risk that the 2014-2018 budget is set too high, “endangering the application of sound financial management principles.”

Leave a Reply

Your email address will not be published. Required fields are marked *

Subscribe to our newsletters

Job vacancies

Commercial/Sales Manager

Crush Wines Ltd
Bremhill/Home office, GB

Wine Buyer

Adnams
Southwold, UK

Sales Manager - Scotland

Eurowines Ltd
Scotland

Sales Manager - North-West England

Eurowines Ltd
North-West England, UK

Sales Manager - London

Eurowines Ltd
London, UK

Key Account Manager - Grocery

Australian Vintage Limited
London (Croydon), UK

Key Accounts Manager - Impulse

Australian Vintage Limited
London (Croydon), UK

Business Development Manager

Regency Wines Ltd
North Devon & Somerset, UK

Sales Manager - North East England

Eurowines Ltd
Within 15-20 mile radius of York, UK

National Account Manager

Ehrmanns Wines
London, UK

London Account Manager

The Drinks Club
London, UK

London Sales Executive

Gourvid Limited
London and Greater London, GB

Logistics Administrator

Speciality Drinks Ltd
Park Royal, London, UK

Head of Sales - Hush Heath Estate

Hush Heath Estate
Kent/ London, UK

London Sales Executive

VDS UK Ltd
London, UK

The Global Merlot Masters 2017

Deadline : 2nd May 2017

db Awards 2017

Deadline : 28th April 2017

The Global Organic Masters 2017

Deadline : 2nd May 2017

The Global Sparkling Masters 2017

Deadline : 12th May 2017

Click to view more

Global Chardonnay Masters 2016

Now in its fourth year, the competition will identify the best Chardonnay from all around the world in every price range.

Rioja Masters 2016

Now in its fifth year, the competition will recognise and reward the finest Riojas on the world stage.

Fortified Masters 2016

Now in its third year, The Fortified Masters will reward the best fortified wines on offer.

The Global Malbec Masters 2016

the drinks business is proud to announce the inaugural Global Malbec Masters 2016.

Click to view more