Although Europe is the home of wine and is the world's leading producer, European winemakers are quickly losing their market share as they face stiff competition from the so called "New World" producers. And as consumption continues to fall, imports are rapidly increasing while exports are only growing slowly.

The problem is becoming more drastic given that even in those countries where people are drinking more wine than before, they are often choosing New World Wines over European wines. Apart from this, consumers are often getting concerned and confused over the complicated and restrictive labelling rules, while producers are being prevented from adapting their wines to meet the changing consumer tastes.

The EU helps the wine sector by pumping in e1.3 billion annually, but much of that is being spent on getting rid of surplus wine for which there is no market. So the Commission felt that a reform is a must and after a yearlong intense consultation with all stakeholders concerned, it adopted, on 4 July 2007, a proposal for reforming the Common Market Organisation for Wine (COM(2007) 372).

The proposal focuses on making the sector more competititive and qualityoriented through the abolition of all inefficient market support measures as well as a ban on the use of sugar for enriching wine. Moreover, the Commission wants to give uncompetitive wine producers financial incentives to encourage them to leave the sector. The EU executive in fact wants to reduce some 200,000 hectares of vines. But how will this proposal affect Malta?

Forum Malta fl-Ewropa has teamed up with the Viticulture and Oenology Unit within the Ministry for Rural Affairs and the Environment to discuss this proposal with Maltese stakeholders. A half-day consultation event was held on 24 October, during which Randall Caruana, from the Viticulture and Oenology Unit gave a detailed presentation on the contents of the proposal and on how it could affect the Maltese wine sector.