The European Commission adopted a mixed ruling on the legality of French state aids to the wine sector, relating to the sales crisis of "Rivesaltes" wines in 1996-2000

Food & Drink Weekly, Jan 24, 2005

The European Commission adopted a mixed ruling on the legality of French state aids to the wine sector, relating to the sales crisis of "Rivesaltes" wines in 1996-2000. Aid for promotion of these wine varieties and for reconverting vineyards are found to be compatible with EU law, while aids paid per hectare to farmers who sold the product as table wine are not.

Money paid until 2000 for promotion of Rivesaltes wine is in the clear, as is reconversion aid up to an intensity (proportion of total spending) of 30% and/or 5,000 [euro] per hectare. Above that level, money must be reimbursed to the French government. Aid paid per hectare for wines sold as table wine instead of under the banner of Rivesaltes or Grand Roussillon is deemed illegal according to the terms of the EU's rules on the wine market and state aids.