New members get EU wine funding
million in EU funding so that they can improve and expand their
vineyards, helping them to make better quality wine and compete
more effectively in both their home markets and abroad, writes
Chris Mercer.
The six are Hungary, Malta, Slovenia, Slovakia, Cyprus and the Czech Republic - the main wine-producing countries out of the 10 states which joined the EU in May this year.
Of these, Hungary is by far the winner, securing €10 million, though Slovakia and Slovenia will each get around €3 million. Cyprus has been promised just over €2 million, just slightly more than the Czech Republic, whereas Malta, by far the EU's smallest member, will get €171,000. All figures are detailed in the EU's initial funding plan and have yet to be confirmed.
The EU sets aside around €450 million each year to help member countries improve their vineyards and, whilst some €350 million of this is still the preserve of the wine-producing triumvirate of France, Spain and Italy, new members in central and eastern Europe have, for the first time, also staked their claim.
Most of the funding is likely to be used to help wine makers modernise their vineyards to help beat off outside competition in their home markets and boost export potential.
Of the six new recipients, only Hungary exports sizeable amounts of wine to the EU, roughly 40 per cent of production, though even this country boasts a strong home market for its annual wine production of 4.3 million hectolitres.
Malta aims to become self-sufficient in wine over the next 10 years, whereas Slovenia is both keen to protect its burgeoning wine industry, which accounts for around 95 per cent of the home market, and take advantage of new markets following EU accession, according to Dusan Brejc, managing director of the Commercial Union for Viticulture and Wine of Slovenia.
Brejc wants to see Slovenian wine exports rise from five to 20 per cent over the next few years. "We should restructure those vineyards that have potential internationally with an orientation towards a more international style of wine, though I do not know when we will be able to work with this money," said Brejc.
Johann Reyniers, a spokesman for the European Commission, said: "It's a question of restructuring so that we can turn poorer quality wine into good quality wine. Of course countries like France get more because they produce more, but if a member state does a lot of work with the money they get, then the next year we can give them more."
EU members must submit plans for restructuring their vineyards to the Commission before it can decide on where to put the money. Reyniers added that each member's subsidy could be adjusted throughout the year depending how much progress was being been made.
This year's main loser has been Portugal, which is set to see its grant slashed by around €15 million to help make way for the six new states.
