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Assistance for European Wine producers and international envy

700€ per hectare and 0,15€ per litre of wine, this is the assistance for European Wine producers that the rest of the world looks at with envy,without considering the off-set

Assistance-for-European-wine -producers-for-exportation

Assistance-for-European-wine -producers-for-exportation

By Donatella Cinelli Colombini

It is well known that abroad the assistance for European wine producers and farmers is looked upon with suspect, as if they were a disturbance to competition but in a dishonest way. And wine is one of the products to be questioned.

A few years ago, to be able to export, all wineries were forced to send to China a declaration stating what contributions had received. It all ended when Europe accepted the commercialization of Chinese solar panels.

The last episode of this saga is the article “How Much Government Assistance Do European Wine Producers Receive?”published by the Journal of Wine Economics by Kym Anderson from the School of Economics in the Adelaide University and by Hans G. Jensen of the Institute of Food and Resource Economics from the Copenhagen University.

These two academics have estimated the European aids to be an average of 700€ per hectare and 0,15€ per litre of wine so roughly a nominal tax rate of about 20%of costs.

Assistance-for-european-wine-producers-for exporting-to Brazil

Assistance-for-European-wine-producers-for exporting-to Brazil

An enormous amount 2,341 billion per year, of which France alone gets about one third of the total (830 million Euro), Italy and Spain about a fifth each 570 the first and 405 the second) while all the other nations are under 100 million Euro.

If we go and see these total we realize that the vineyards with most contributions per hectare are the Austrian ones .They get 2.400 € so more than double everyone else. After this initial help the aid per hectolitre of wine is superior in Austria with respect to every other European nation: 370€. In this list we find  Slovakia in second position then Slovenia, Check republic, Portugal, France and Bulgaria all above the European  average of 145€, while we in Italy are below with 140€. Read more…

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