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The European Court of Auditors’ (ECA) Special Report Nº 7/2012, on the progress achieved to date of the reform of the common organisation of the market in wine shows that, the restructuring and conversion measure, that has the objective to increase the competitiveness of wine producers through paying compensation for the loss of revenue while a vineyard is being adapted and as a contribution to the costs incurred, had a significant impact for large areas of vineyard across Europe. The reform entered into force in August 2009. Nevertheless, increases in yields which result from restructuring without any discernible impact on overall consumption partially off-set the effects of grubbing-up. The budget made available for grubbing-up in the three year application period of the measure from 2008/2009 to 2010/2011 was €1,074 billion. For restructuring and conversion, €4,2 billion had been allocated to the measure for the 10 year period of 2001 to 2010.

In addition, according to the report, the 2008-2011 grubbing-up scheme has reduced the EU production by an estimated 10,2 million hl per year only, largely because the assumptions on which the initial target was based did not materialise. The Court considers that the aid rates were set at too high levels and that the scheme could therefore have been more efficient by achieving more significant results with the resources made available.

In the light of these results, the Court recommends to the European Commission to establish an estimate of the balance between supply and demand in the wine sector based on updated data, including the planned liberalisation of planting rights. It also recommends further grubbing-up measures be considered necessary, the grubbing-up of modernised vineyards should be avoided by establishing additional eligibility criteria linked to the vineyard itself and not only to the farmer. Given the wide range of operations defined by Member States in implementing the restructuring measure, the report also says recommends setting up a more precise definition of eligible restructuring operations, in particular those allowed under the regulatory heading “Improvements to vineyard management techniques”.