1. Support may be granted for the distillation of wine in accordance with the conditions laid down in this Article. Such support shall be proportionate, duly justified by the Member State and targeted to the most affected wines and production regions, in accordance with the second subparagraph. It may be implemented at national or regional level for red or rosé wines, separately or for both colours together, which can be wines with a protected designation of origin or a protected geographical indication or wines without a protected designation of origin or a protected geographical indication.
The Member States, which decide to implement this measure, shall demonstrate for each type and colour of eligible wine, either at regional or at national level, as appropriate, the occurrence of one or more of the following market circumstances:
(a)
a substantial increase on the latest available wine stocks at production level compared to the average amount of stocks for the same time in the previous 5 marketing years, or compared to the average amount of stocks for the same time in the 5 previous marketing years excluding the highest and the lowest values;
(b)
a substantial decrease of the average market price at production level for the ongoing marketing year compared to the average price of the 3 previous marketing years, or compared to the average price over the 5 previous marketing years excluding the highest and the lowest values of yearly averages;
(c)
a substantial decrease of cumulated market sales at production level for the ongoing marketing year compared to the average of the 3 previous marketing years for the same period, or compared to the average over the 5 previous marketing years, excluding the highest and the lowest values of cumulated sales for the same period, and provided such a decrease does not result from a decrease in production.
2. The alcohol resulting from the supported distillation referred to in paragraph 1 shall be used exclusively for industrial purposes, including disinfection or pharmaceutical, or for energy purposes so as to avoid distortion of competition.
3. The beneficiaries of the support referred to in paragraph 1 shall be wine enterprises producing or marketing the products referred to in Part II of Annex VII to Regulation (EU) No 1308/2013, wine producer organisations, associations of two or more producers, interbranch organisations or distillers of grapevine products.
4. Only the costs of the supply of wine to distillers and of the distillation of this wine shall be eligible for support. The wine to be distilled under this measure shall be originating in the Union and shall conform to the requirements to be marketed within the Union and to the relevant product specifications for wines bearing a protected designation of origin or a protected geographical indication.
5. Member States may establish in their national support programmes priority criteria for the beneficiaries. Such priority criteria shall be based on the specific strategy and objectives set out in the support programme and shall be objective and not discriminatory.
6. Member States shall lay down rules on the application procedure for the support referred to in paragraph 1, which shall include rules on:
(a)
the natural or legal persons that may submit applications;
(b)
the submission and selection of applications, which shall include at least the deadlines for the submission of applications, for the examination of the suitability of each proposed action and for the notification of the results of the selection procedure to the operators;
(c)
the verification of compliance with the provisions on eligible actions and the costs referred to in paragraph 4 and priority criteria where priority criteria are applied;
(d)
the selection of the applications, which shall at least include the weighting attributed to each priority criterion where priority criteria are applied;
(e)
arrangements for the payment of advances and the provision of securities.
7. Member States shall fix the amount of support to beneficiaries based on objective and non-discriminatory criteria. The amount of support shall be fixed at regional or national level, as appropriate, for each type and colour of eligible wine as referred to in paragraph 1. The amount of support cannot exceed 80 % of the lowest monthly average price recorded at production level in the marketing year 2022/2023 for each type and colour of eligible wine, for which the measure applies, in the given region or in the territory of the Member State. Where recorded market prices are not available, they may be estimated by a competent authority of the Member State concerned based on the best available data.
8. Articles 1 and 2, Article 43 and Articles 48 to 54 and Article 56 of Commission Delegated Regulation (EU) 2016/1149 ( 5 ) and Articles 1, 2 and 3, Articles 19 to 23, Articles 25 to 31, Article 32(1), second subparagraph, and Articles 33 to 40 of Commission Implementing Regulation (EU) 2016/1150 ( 6 ) shall apply mutatis mutandis to the support for crisis distillation of wine.
9. By 31 August 2023, Member States shall notify to the Commission the types and colour of eligible wine and the regions, in which the measure is to apply, as well as its justification in accordance with paragraph 1, the amounts of compensation to be applied in accordance with paragraph 7 and their justification and the volumes expected to be distilled.
