two wine glasses containing white wine and a bottle. Wine sector to receive support package

EU Parliament backs wine sector support package

Business News

The European Parliament has approved a wide-ranging package of measures to support the European wine sector, endorsing an agreement reached with EU governments earlier in December.

Meeting in Strasbourg, MEPs voted 625 in favour, with 15 against and 11 abstentions, to back the deal negotiated with the Council of the European Union.

The package introduces production control tools and increases EU financial coverage against climate risks. It also updates labelling rules for low- and no-alcohol wines. New designations will include “alcohol free” for wines with an alcohol content below 0.5%, “0.0%” for products below 0.05%, and “reduced alcohol content” for wines with an alcohol level at least 30% lower than the standard strength but above 0.5%.

EU countries will be able to raise support for climate-related investment to up to 80% of eligible costs. EU funds may also finance the permanent removal of vines, known as “grubbing up”, to stabilise production in regions facing structural oversupply. National support for wine distillation and green harvesting will be capped at 25% per Member State. The expiry date of the planting rights regime will be scrapped and replaced with a 10-year review clause.

Promote rural growth and high-quality European wines in third-countries

Measures to promote rural growth and high-quality European wines in third countries may receive EU co-financing of up to 60%, with additional national top-ups for SMEs and larger firms. Export-oriented wines will be exempt from certain EU internal market labelling obligations.

EU Agriculture Commissioner Christophe Hansen said the wine sector faces declining demand, shifting consumer preferences and climate pressures, as well as an unstable international context. The package now awaits formal Council approval before entering into force.

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