The FEV warns of regional cuts to wine promotion at a "critical moment" for exports

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Wine Sector

The Spanish Wine Federation expresses its deep concern following the decision by several autonomous communities to reduce support for international promotion. The industry association believes the measure harms the sector's competitiveness at a crucial time and contradicts European regulations.

La Internationalization of the Spanish wine sector It has just suffered a major institutional setback.In a global scenario marked by uncertainty and a negative trend in export sales indicators, the recent decision by the Sectoral Conference on Agriculture and Rural Development to reduce financial support for wine promotion has set off alarm bells throughout the industry..

Following the vote held on July 7, prompted by the initial challenge from La Rioja, the increase in aid intensity that had been approved just a few months earlier has been officially revoked.Thus, the maximum limit of public funding for these international initiatives return to 50%, cancelling the previously agreed increase to 60%.This rollback has gone ahead despite votes against maintaining the aid from ten autonomous communities: Galicia, Andalusia, Cantabria, La Rioja, Region of Murcia, Valencian Community, Castilla-La Mancha, Extremadura, Balearic Islands and Community of MadridConversely, only eight regions advocated maintaining the current level of support..

La Spanish Wine Federation (FEV) has expressed its deep concern, noting that this reduction directly contravenes the guidelines set by the European Parliament through the 'Wine Package'as well as the wishes of the European Commission and the Council.

"It is difficult to understand why, precisely when the sector needs to strengthen its presence in the markets and recover commercial dynamism, the decision is made to reduce the resources available for one of the most effective tools of European wine policy.", has declared José Luis Benítez, general director of the FEVThe executive stressed that "Promotion is not an expense but a necessary investment to generate value, sustain employment, consolidate the economic activity of rural areas and guarantee the viability of thousands of wineries that depend on their ability to sell their products in increasingly competitive markets.".

The situation takes on a more serious and uncertain character for business planning since, under the protection of the March agreement, resolutions granting aid with 60% coverage had been issued, which now sends a contradictory message to a sector that demands stability for its international investments medium term.

The wine industry association openly criticizes some regional governments for preferring to divert funds towards policies that destroy productive potential, such as the vineyard uprooting, to the detriment of marketing and the search for new markets for the already manufactured productThe organization is demanding bureaucratic simplification from the Government, as the current complexity prevents many wineries from accessing these lines of financing..

"Spanish wine needs more market, not less vineyard."Benítez concluded emphatically. "It needs more tools to compete, more support for promotion, and greater commercial ambition. Choosing to reduce support for promotional activities is tantamount to weakening one of the few instruments capable of generating direct and measurable returns for wineries, especially for small and medium-sized enterprises that have fewer resources of their own to access international markets.".

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