Undergoing heavy unsold after Trump’s containment and taxes in October, the wine sector will benefit from a government extension of 30 million euros on the government support plan of 140 million euros released in early May. Announced on Friday, the new aid breaks down equally between aid for private storage and additional support for crisis distillation. To these means of disposing of overstocks will be added social and tax exemptions for VSEs and SMEs up to 100 million euros, already announced on May 11.
However, no significant progress on the European compensation fund of 300 million euros claimed by the industry to offset the effects of the Trump taxes on French wines, decided in reaction to the Airbus-Boeing conflict.
If the industry welcomes these efforts, it stresses that they remain insufficient for the winegrowers, who estimated 500 million in the necessary aid (including 300 million for the compensation fund). For some actors, the terms of the aid could prove counterproductive. “If the appellations that will use the distillation device do not undertake to significantly reduce their production this year, we will only push the problem, supports Michel Chapoutier, president of UMVIN, which brings together French wine and spirits traders. We’ll end up in 2021 with the equivalent of two vintages.“
The federation also regrets the choice to draw on the unused envelope of the national aid plan for the sector, to finance this exceptional support plan. A component of 40 million euros usually devoted to promoting the sector abroad. “Without this money, we will no longer have the means of an aggressive and essential revival of consumption“, Regrets the leader. To support this recovery, the industry has asked for a temporary drop in VAT on its wines and alcohol served in restaurants, at least for six months.