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EU wine reforms aim to tackle oversupply and climate change
Following a meeting in Brussels this week, the EU has unveiled a comprehensive plan to revitalise its wine sector.
Looking ahead to 2025, the European Union has gathered to make a comprehensive plan to strengthen the resilience of its wine sector, addressing declining consumption, climate change pressures, and export uncertainties. The proposals focus on sustainability, market adaptation and reducing structural imbalances.
The wine industry has faced significant headwinds in recent years, declining domestic wine consumption, shifting consumer preferences, and the growing impact of climate change have put pressure on both producers and policymakers to adapt.
One of the headline measures is a proposal for “grubbing-up schemes”—programmes that provide financial incentives for producers to permanently remove vineyards in regions with persistent oversupply. This would help align production capacity with decreasing demand while ensuring that vineyards with high cultural, environmental, or landscape value are protected. For example, terraces, unique grape varieties, or areas vital to rural economies could be exempted from these schemes.
The recommendations also call for greater flexibility in vineyard authorisations. Member States would be empowered to halt new planting in regions where oversupply is a concern. Additionally, extended deadlines for replanting authorisations could provide winegrowers with more time to make strategic decisions about land use.
Adapting to climate change
Recognising increasing industry demands from both consumers and producers to address climate change, the report that followed the meeting emphasises the need for enhanced risk management tools. This includes proposals for expanded insurance schemes to cover losses from extreme weather events and EU-backed mechanisms, such as reinsurance, to help producers share risks more effectively.
Another key focus is on climate adaptation. This would involve making support for climate-friendly practices more accessible, such as funding for sustainable vineyard restructuring, new grape varieties better suited to changing climates, and technologies for water and soil management.
Responding to market trends
The EU acknowledges the changing preferences of wine consumers, with growing demand for low- and no-alcohol wines. The proposals encourage adapting wine production to meet these demands, including revising EU rules on partially and fully de-alcoholised wines to make them more marketable without compromising the reputation of traditional EU wines.
Efforts are also proposed to simplify cross-border trade, particularly for smaller producers. This includes creating systems similar to the Import One-Stop Shop (IOSS) to streamline tax and excise duties on wine sold online across EU borders.
Boosting export competitiveness
Exports have historically helped counterbalance declining domestic wine consumption. However, the report highlights recent challenges in traditional export markets due to geopolitical instability and changing consumer trends. To address this, it recommends better-targeted promotion programmes and enhanced support for small producers entering new markets.
Additionally, there are proposals to link wine tourism more directly with wine promotion, leveraging the cultural and geographical appeal of EU wine regions to attract international visitors.
The European Commission will review these recommendations and decide how to incorporate them into future policy frameworks.
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