The French government has formally requested access to the European Commission’s agricultural crisis reserve to support its wine sector, which is facing mounting economic difficulties.
The move comes after fresh obstacles in exporting to the United States, where tariffs on French wines have risen from 10% to 15%, compounded by an unfavorable euro-to-dollar exchange rate.
In a letter to European Agriculture Commissioner Christophe Hansen, Agriculture Minister Annie Genevard outlined the challenges facing French winemakers and urged Brussels to activate EU support mechanisms, particularly the crisis reserve fund. Ministry sources confirmed that the letter stressed how recent EU–US negotiations have led to a complex situation for French exports, worsening problems in a sector already under strain.
A European Commission official has confirmed receipt of the request and stated that it will now undergo analysis.
Structural Measures Under Discussion
The request for EU funds is linked to the 2024–2025 and 2025–2026 campaigns. The current campaign ends on October 15, with the next beginning immediately after on October 16. Formalizing the request was a necessary step for France to be eligible for crisis reserve funding.
In July, the French wine sector presented its roadmap to the minister. This plan includes:
- vineyard uprooting,
- crisis distillation to reduce surplus stocks,
- measures to secure fairer prices and liquidity, and
- efforts to regain international market share.
Jérôme Despey, president of FranceAgriMer’s wine advisory board, noted that these structural reforms would require between EUR 200 million and EUR 250 million, subject to EU approval of a new regulatory framework allowing vineyard uprooting. This legislative package will be reviewed in Brussels later this fall.
FranceAgriMer also plans to launch a questionnaire to identify how many hectares producers would be willing to uproot. The aim is to assess the sector’s needs quickly and provide Brussels with clear data to accelerate the administrative process.
A Sector Under Pressure
The urgency is amplified by a difficult harvest season and weakening international demand. Many producers are considering reducing their production capacity as a way to stabilize finances. With declining exports to the US and oversupply issues at home, the sector is in need of immediate relief.
The request also comes at a sensitive political moment. Prime Minister François Bayrou faces a vote of no confidence in the National Assembly, scheduled for Monday. Any resulting changes in government could delay key decisions affecting the wine sector, further complicating the situation.
Outlook
The French request underscores the vulnerability of traditional wine powers to shifting global trade dynamics, from tariff hikes to currency fluctuations. Whether Brussels approves the use of crisis reserve funds and new vineyard regulations will be crucial in determining how effectively French winemakers can adapt to today’s economic challenges.
Source: Vinetur