Explanatory Memorandum to COM(2001)332 - Amendment of Regulation (EC) No 1493/1999 on the common organisation of the market in wine

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The aim of this proposal for a Regulation is to facilitate the transition from earlier vineyard restructuring arrangements and the application of a policy of generational replacement in the wine sector.

In a number of Member States young farmers are encouraged to set up as winegrowers in return for new planting rights and the option to take part in vineyard restructuring and conversion plans. This policy has been followed in part in Regulation (EC) No 1493/1999 through the implementation of the system of reserves of planting rights. During the transition from earlier arrangements in a number of Member States to the new market organisation, it has been necessary to provide for the new planting rights awarded within the framework of the former material improvement plans (MIP) and those awarded to young farmers to be eligible, on a temporary basis, for the restructuring aid scheme as was previously the case. The implementation of the system of reserves provided for in Article 5 of the above Regulation will subsequently allow full application of the 'young winegrowers' policy with no further need for a derogation.