ANNOUNCEMENT 23 Jun 2020

In June 2020, the Ministry of Agriculture, Food and Forestry of Italy announced the establishment of a crisis distillation system for wine, following the EU approval of exceptional measures for the wine sector (see related state act).

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising

SOURCE

Ministerio delle politiche agricole alimentari e forestali. Ministry of Agriculture, Food and Forestry. Ministerial Decree. “Disposizioni nazionali di attuazione del regolamento delegato (UE) n. 592 del 30 aprile 2020 della Commissione per quanto riguarda la misura della distillazione di crisi per la Campagna 2019 /2020 e rimodulazione del PNS relativa all’annualità 2020”. 23/06/2020. Available at: https://www.politicheagricole.it/flex/cm/pages/ServeBLOB.php/L/IT/IDPagina/15714

Ministerio delle politiche agricole alimentari e forestali. Ministry of Agriculture, Food and Forestry. Press release. “Via libera alla distillazione di crisi dalla Conferenza Stato-Regioni. Bellanova:"Sosteniamo e rafforziamo il settore vitivinicolo con un ampio ventaglio di misure" 18/06/2020. Available at: https://www.politicheagricole.it/flex/cm/pages/ServeBLOB.php/L/IT/IDPagina/15606

Conferenza delle Regioni e delle Province Autonome Conference of Regions and Autonomous Provinces. “Documento della Conferenza delle Regioni del 18 giugno”. Available at: http://www.regioni.it/newsletter/n-3876/del-07-07-2020/distillazione-di-crisi-sancita-lintesa-sul-decreto-21385/#:~:text=(Regioni.it%203876%20%2D%2007,canale%20Ho.re.ca.

Update

Ministerio delle politiche agricole alimentari e forestali. Ministry of Agriculture, Food and Forestry. Ministerial Decree. “Decreto ministeriale n. 6705 del 23/06/2020 relativo a: “Disposizioni nazionali di attuazione del tegolamento delegato (UE) n. 592 del 30 aprile 2020 della Commissione per quanto riguarda la misura della distillazione di crisi per la Campagna 2019 /2020 e rimodulazione del PNS relativa all’annualità 2020” - Modifica date.”. 06/07/2020. Available at: https://www.politicheagricole.it/flex/cm/pages/ServeBLOB.php/L/IT/IDPagina/15714

Inception date: 23 Jun 2020 | Removal date: 21 Aug 2020

Price stabilisation

On 23 June 2020, the Italian Ministry of Agriculture, Food and Forestry published a Ministerial Decree establishing a crisis distillation system for wine with a budget of EUR 50 million (approx. USD 56.6 million). The measure represents the national activation of the exceptional support measures to the wine sector approved by the European Commission in May 2020 (see related state act).

According to the measure, the support scheme consists of wine producers entering into distillation commitments (contracts) with distillers in order to use the resulting ethyl alcohol for health and/or industrial purposes. The government fixed the price per grade and per hectolitre at EUR 2.75. For instance, alcohol from distilled wine of 11° will be sold at EUR 30.25 per hectolitre.

The measure aims to reduce the stocks of unsold wines and will be financed with EU funds. Notably, exceptional market measures for certain sectors – including wine – can be financed under the European Guarantee Agricultural Fund, the first pillar of the EU’s Common Agricultural Policy (see related state act).

In this context, the Minister of Agriculture, Teresa Bellanova, highlighted that “crisis distillation is only the first of the various measures planned in favour of the wine sector to face the crisis resulting from the COVID-19 pandemic and the consequent lockdowns imposed by governments around the world” (own translation).

The measure entered into force on 23 June 2020. Support will cover eligible distillation contracts until 15 July 2020.  

A state act in the GTA database is assessed solely in terms of the extent to which its implementation affects foreign commercial interests. On this metric, the support granted here is discriminatory.

Update

On 6 July 2020, the Ministry of Agriculture, Food and Forestry published a Ministerial Decree that extends the date until which eligible distillation contracts can receive support. The new date is set at 21 August 2020.

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