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EU unveils crisis plan to protect wine industry

The European Commission rolled out emergency measures to shield the EU’s €36 billion wine sector from plummeting demand, climate disruptions, and the looming threat of US tariffs, according to Euractiv.

The plan, based on recommendations from a 2024 High-Level Group, aims to stabilise one of Europe’s most iconic agricultural industries. The measures include increased funding for drought-resistant vines and support for sustainable production methods.

Global wine consumption hit a 27-year low in 2023, with declines in key markets like the US (-3%), China (-50% since 2019), and Europe (-1.8%) due to inflation and shifting consumer habits. Meanwhile, EU wine production dropped 9.6% in 2023 after extreme weather, but structural surpluses persist.

In response to the growing threat, EU member states may ban new plantings of grapes to manage oversupply and extend unused planting authorisations for up to three years. Measures include distillation, grubbing-up vines, and “green harvesting” (removing unripe grapes) to reduce yields.

The Commission also proposes uniform and familiar marketing terms such as “alcohol-free” and “alcohol light” instead of the previously introduced “dealcoholised” and “partially dealcoholised”, which have not proved to be the most attractive to consumers.

However, the plan bypasses mandatory health warnings such as cancer warnings, a hot-button issue for WHO and countries such as Ireland.

The announcement comes days before the Vinitaly wine fair in Verona, where EU Agriculture Commissioner Christophe Hansen will meet with industry leaders. It also precedes potential trade tensions with the US, where President Trump has threatened new tariffs on EU wines.

The measures take immediate effect, with the Commission pledging to monitor their impact. However, analysts warn the sector needs deeper transformation to address changing consumer habits and climate realities.

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