A Seattle Times story beautifully portrays the changes that Europe's 'wine lake' crisis is forcing on the ground. Excerpts that follow should encourage you to read the original story. It will give you an idea of the changes sweeping through the European wine industry.

The bureaucracy that runs the 25-nation bloc of European democracies is embedded in the lives of its 455 million citizens, from the quality of their air through the size of their taillights to the content of their sausages. And the way they make wine.

The EU has long warned that falling sales and plummeting prices caused by competition from New World wines and the decline of wine as a daily fixture of European dining tables are threatening one of the continent's most time-honored products.

Through funding and legislation, the EU has been encouraging producers to choose quality over quantity, slashing yields to keep prices afloat, and fostering wines that appeal to new consumer trends.

The challenge from New World wines is heating up. European wines, mainly from France, Italy and Spain, still account for 65% of the world's production and 57% of its consumption. But imports from countries such as South Africa, Chile and Australia have skyrocketed in the past decade - South Africa's more than sevenfold - while EU wine exports have risen only slightly. Experts predict that on current trends, Europe will soon become a net importer of wine.

In June, the European Commission proposed a radical overhaul, cutting production of low-quality wines and paying winemakers around US$2.5 billion over the next five years to take nearly a million acres of vineyards - about 11% of the total - out of production.

The reform, envisioned to take effect from the 2008 growing season, will slash subsidies for weak producers and direct more funds towards those willing to modernise.

An egalitarian impulse is also at work. The new system encourages small growers to bottle their wine under their own labels, rather than sell it in bulk and anonymously for blending into the great-name vintages. So far, the reform has changed the face of 5% of Europe's vineyards, with Spain benefiting the most, according to an European Commission report.

For the complete story, go to http://seattletimes.nwsource.com/