Wine is a fundamental drink in European food and wine culture and its marketing makes a strong contribution to the bloc’s economy. The European Union represents 60 percent of global wine production, with the sector being the third largest in terms of agri-food exports.
According to data from last February from the Directorate-General for Agriculture and Rural Development of the European Commission, between 2020 and 2025, the average annual production was 157 million hectolitres. Yet the sector is currently facing a series of challenges linked above all to the evolution of consumption models and market uncertainties. This is why the EU has developed a modernized policy framework to support the sector with the aim of making it more competitive, resilient and future-oriented.
Dealing with the crisis
“We are providing the sector with the necessary tools to face the profound crisis it is experiencing. These include measures aimed at regulating supply according to demand, such as the possibility of financing crisis measures such as grubbing up with European funds, thus guaranteeing equal opportunities for winemakers from the different Member States”, declared the rapporteur for the Chamber, Esther Herranz García, Spanish MEP.
“We also offer higher co-financing rates for climate change adaptation measures”, and furthermore “we have improved the conditions for promotion outside the EU, which will allow for more stable and targeted campaigns, and we have improved the conditions for wine tourism and the diversification opportunities it offers”.
Wine without alcohol
The reform, which was approved in the negotiations between Parliament and the EU Council, and now only awaits formal approval, introduces for the first time a harmonized definition at European level of alcohol-free wine, with the aim of intercepting a growing market. The wording “alcohol-free”, accompanied by “0.0%”, can only be used for products with an alcohol content of no more than 0.05% by volume.
For versions with an alcohol content equal to or greater than 0.5%, but reduced by at least 30% compared to the same wine before dealcoholization, the indication “with reduced alcohol content” or “alcohol reduced” will be mandatory. The European Parliament claims that these rules clarify previously confusing terrain. The goal is to make the sector competitive in an expanding segment by providing clear and comparable labels.
Simplified labeling and digital information
The new rules also aim to reduce administrative costs for companies and standardize labeling practices across member countries. Consumers will have easier access to information through digital labels and harmonized pictograms. For bottles intended exclusively for export, an exemption is introduced: it will not be necessary to provide the list of ingredients or the nutritional declaration required for the internal EU market.
Flexibility for eradication and supply management
To avoid production surpluses and stabilize the market, the new framework allows Member States to finance crisis measures with European funds, including the eradication of excess vineyards.
“The possibility of financing arrachage operations with EU funds gives the sector tools to face the profound crisis it is going through”, argued Herranz García.
The system of planting rights is also modified: the expiry of the regime disappears and a ten-year review is introduced, ensuring more predictability in the long term. The system of authorizations for planting new vineyards is also modified. Until now, this regime had an expiry date and, in theory, should have ended at some point, creating uncertainty among producers.
With the reform, that deadline disappears completely although the system remains in force but will simply be reviewed every ten years. This way the sector can plan long-term investments knowing that the rules will not change suddenly, while institutions will still have the ability to update the framework when necessary.
More support for climate adaptation
The reform then raises the EU co-financing ceiling for investments linked to climate mitigation and adaptation from 50 to 80%. According to the Commission, this will allow companies to accelerate the transition towards more resilient practices. The package also includes interventions to combat diseases such as flavescence dorée through monitoring, research, diagnostics and targeted training.
In the presence of natural disasters, extreme climatic events or outbreaks of plant diseases, producers will have an additional year to replant damaged vineyards. The objective is to avoid structural losses of the vineyard areas and allow a more orderly recovery.
Stimulation for innovation and wine tourism
The package also makes it clear that rosé can be used as a base for regionally flavored products, paving the way for greater diversification of the offering. The Commission explicitly talks about encouraging “innovation”, including new types of wine-based drinks, to respond to evolving consumer tastes. To stimulate rural economies, producers will be able to receive targeted support for wine tourism initiatives, strengthening the role of organizations that manage PDOs and PGIs, which are included in the support for tourism activities.
Promotion of European wines in foreign markets
The system of aid for promotion in third countries is also strengthened: the EU will be able to cover up to 60% of campaign costs, with the possibility for member states to add a further 30% for SMEs and 20% for larger companies. The initiatives may include advertising, events, fairs and market studies, with programs that can be financed for three years, renewable for up to nine.
“Promotion and wine tourism are strategic levers to enhance our denominations and support rural areas, especially in the hilly and foothill areas where wine represents an economic, social and landscape support”, declared the Italian MEP Herbert Dorfmann, EPP coordinator in the Agriculture Committee of Parliament.
The crisis context of the sector
The plan arrives at a difficult time for the supply chain, affected by the structural decline in consumption (-1% per year expected until 2035), global competition, the effects of climate change and the uncertainty generated by US duties on European wines and spirits. The agreement will now be formally confirmed by Parliament and Council before entering into force.
