The European Commission has approved a support package of €15 million for the wine sector in Portugal to help rebalance the market and prevent a wider crisis.
The initiative aims to address the accumulation of stocks in the Portuguese wine sector caused by a decrease in sales of red wine combined with an increase in production last year.
The funding will support temporary crisis distillation to remove some of the volumes currently in excess, the Commission noted.
The alcohol obtained by distillation can only be used for industrial purposes, like disinfection, pharmaceutical, and energy purposes to avoid distortion of competition.
National authorities will distribute the aid to producers, cooperatives, distillers and enterprises in the wine sector, based on applications received.
Portugal is expected to notify the Commission on the implementation of the measure, notably on the quantities of wine withdrawn from the market for each region, the Commission said in a statement.
Support Package
The Commission has also approved support packages for farmers in Austria, Czechia, and Poland in the fruit, vegetables and wine sectors, including €10 million for Austria, €15 million for Czechia, and €37 million for Poland.
In spring of this year, Czechia as well as parts of Austria and Poland were affected by frost, which impacted orchards and vineyards. Poland faced additional damage from hail.
Janusz Wojciechowski, commissioner for agriculture, stated, "With this emergency support, the European Commission will provide much-needed aid to our farmers in Austria, Czechia, Poland, and Portugal.
"The major climatic and market disturbances endured by these farmers illustrate once again the importance of a strong agricultural reserve in the CAP budget, to reinforce stability in the face of increasingly severe and unpredictable crises. The stability of our farmers is fundamental for the stability of our society. Therefore, now and in the future, the Commission will stand with them in their times of need."
