Admitting that a new generation of European wine drinkers is discovering New World wines and helping them walk away with a "disproportionate share of the market," the EU Commissioner for Agriculture and Rural Development, Mariann Fischer Boel, has finally sounded the warning that "it may not be too long before Europe becomes a net wine importer, an idea that would have been unthinkable a few years ago."

In a statement setting the tone for the European Commission's discussions, slated for July, on "a root-and-branch reform" of the wine sector, Boel didn't pull any punches. "While EU exports continue to rise slowly, exports from the southern hemisphere have exploded. . Europe is producing too much wine for which there is no market. Excess production is forecast to reach up to 15% of total output by 2011 unless we make urgent changes. Stocks are already the equivalent of one year's production and winegrowers face downward pressure on their incomes," Boel declared.

The EU's 'crisis distillation' measure, she said, was meant for unusual circumstances. "But it has now become a regular tool of market management and is even being used for so-called 'quality' wine. This is an unsustainable - some might say crazy - way to spend taxpayers' money," she declared. Excerpts from Commissioner Mariann Fischer Boel's historic statement: Today we are paying huge sums - around half a billion euros a year - to distil wine, store it, and in some cases turn it into bioethanol for use in cars and factories. I am not advocating cutting the annual wine budget of about €1.2 billion. But we must spend it more intelligently," the Commissioner said in her statement. .

Under our concept, we would make available up to €2.4 billion over five years as an incentive for the least competitive producers to stop producing and grub up their vineyards. It would be entirely the vine growers' own decision and we believe the incentive could encourage as much as 400,000 hectares to be 'grubbed up' from the current EU vineyard area of 3.4 million hectares. . My preference would be to abolish the current system of by-product distillation, potable alcohol distillation, support for the private storage of wine, aid for the use of wine must and the infamous crisis distillation. .

The need for reform goes much further than simple market management.

Our producers are hamstrung by rigid rules on wine-making practices, which hinder their ability to compete with the dynamic producers in the New World. Likewise, our system of wine labelling is overcomplicated, confuses consumers and provides little flexibility for our producers to label their wines as they wish. For example, a table wine without a recognised Geographical Indication may not be labelled with the grape variety and vintage.

We need simpler and clearer labelling, we need to consider adopting the internationally accepted wine-making practices of the OIV, International Organisation of Vine and Wine, and we need to allow those who so wish to produce 'New World-style' wines.

We must make greater efforts to market our wines in a competitive marketplace. As things stand, the EU spends just €14 million annually on promotion and marketing. Above all, we need to be bold and creative. .

That is why I am launching this debate on the future of our wine sector. Only after a thorough debate will the Commission come back with legislative proposals, later this year or early next. This is a great opportunity - we must not waste it.

To read the complete statement, go to www.jancisrobinson.com

(Hyperlink: http://www.jancisrobinson.com/articles/winenews060620_2 )