You are currently viewing the International Edition. You can also switch to the Hong Kong Edition.
Tuesday 30 June 2015

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 *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>

If that's interesting, how about these?

Wimbledon serves up English wine

Organisers of this year’s Wimbledon have decided to offer tennis fans English more...

China’s Ningxia region launches wine contest

Select winemakers will have the chance to travel to China to learn from its more...

Bordeaux wine thieves found guilty

A French court has sentenced 15 men over the audacious theft of $1.1 million of more...

Social Media Editor

Competitive

Red wine could help fight depression

A component found in the skins of red grapes could be used to treat depression more...

Parker retrospective boosts 05 Palmer

Château Palmer’s 2005 is the latest wine from that vintage to see an more...

Online retailer to highlight 'hidden gems'

A new online boutique wine importer and retailer Perfect Cellar has opened for more...

Sales Executive - Wines & Spirits Competitions

London, United Kingdom

Competitive

The Proust Q&A: Lorenzo Zonin

Italian winemaker Lorenzo Zonin opens up to db about cooking naked, more...

Sutcliffe steps down from Sotheby’s role

Serena Sutcliffe MW has stepped down from her position as worldwide head of more...

Winemaker fined $35k over toxic waste

An Australian winemaker has been fined AUS$35,000 (£17,000) after he was found more...

Head of On-Trade Sales

London, United Kingdom

Diageo appoints North America president

Deirdre Mahlan, Diageo's chief financial officer, has been announced as the more...

Flavoured styles lead drinks NPD

A new report from Nielsen shows that flavoured variants are dominating more...

UK market in growth as price increases slow

The latest figures from the Wine and Spirit Trade Association show that more...

Supplier Relationship Manager

London, United Kingdom

En primeur: beware the heralded vintage?

From an investment point of view it is best to buy the “vintages of the more...

Castel feeds aperitif thirst

Europe’s largest wine producer, Castel, has unveiled a raft of new products more...

Symington Estates to uncover Douro's best grapes

Symington Family Estates has planted an experimental vineyard in the hottest more...

International Business Development Assistant

London, United Kingdom

To be determined, based on the profile and experience of the candidate

Hardys invests £4m in summer of cricket

Hardys has unveiled a new £4 million consumer marketing campaign to tie in more...

Final call for Liberty apprentice scheme

Liberty Wines is inviting final applications for its apprentice programme, more...

Wine thieves go on trial

A gang of wine thieves accused of stealing a million euros worth of wine from more...

Marketing and eCommerce Manager

London, United Kingdom

Competitive, includes equity options

Austrian wine importer launches in Hong Kong

A wine importer specialising in Austrian wines has launched in Hong Kong to more...

Oregon producer takes international view

One of Oregon’s youngest wine estates has partnered with Jackson Family Wines more...