Italy’s winemakers plan to defy EU label law

Italian winemakers are planning to defy a new European law demanding they exclude their wine’s particular geographic origins from the label, arguing that the move will heavily impact businesses already struggling to survive.

Italy's winemakers plan to defy EU label law
Italian winemakers are planning to defy a new European law demanding they exclude their wine’s particular geographic origins from the label. Photo: Fivi

The law is designed to protect producers with high-quality designations, known as DOC or DOCG, and makes it illegal for uncertified producers to put the geographic region where their wine was made on their label, websites or brochures.

The Langhe area, for example, is famous for its wines in the Piedmont region but it is also a name for wines certified as Langhe DOC (denomination of origin), so winemakers without that certification who use the word face hefty fines under the EU regulation.

The Italian Federation of Independent Winemakers (Fivi) said the move, also endorsed by the Italian government, has infuriated its 800 members, adding that it places them at a disadvantage if their wine cannot identify their regional origins and only generates confusion for customers.

Fivi president Matilde Poggi said they would rather face fines than comply with the law. The organization said hundreds of members are to begin a campaign of “civil disobedience” from January 1st.

"It's a strong action but we feel a responsibility to make our voices heard to protect the interests of all Italian winemakers,” Poggi said in a statement.

Poggi said producers were like ambassadors and that Italian wine was like a “message in a bottle” that promoted the landscape and culture of Italy.

Giving an example, Poggi said it was unfair if a Barolo producer was unable to cite the region of Langhe when promoting their wine since the region was known around the world.

She said like “ambassadors” representing their country, winegrowers were committed “to enhance, promote and preserve the landscape” of Italy.

Italy’s wine industry is worth €9.5 billion a year, while exports account for half the country’s production, according to the most recent figures from the farmers’ organization, Coldiretti, in September.

The country has around 200,000 wineries, from tiny family-run enterprises to large commercial estates, and 650,000 hectares of vineyards, of which more than two-thirds produce high quality DOCG or DOC wine.

“It is unacceptable that, once again, the absurd bureaucracy imposes costs on businesses struggling every day to survive,” Poggi said.

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The Euro celebrates its 20th anniversary

The euro on Saturday marked 20 years since people began to use the single European currency, overcoming initial doubts, price concerns and a debt crisis to spread across the region.

The Euro celebrates its 20th anniversary
The Euro is projected onto the walls of the European Central Bank in Brussels. Photo: Daniel Rolund/AFP

European Commission chief Ursula von der Leyen called the euro “a true symbol for the strength of Europe” while European Central Bank President Christine Lagarde described it as “a beacon of stability and solidity around the world”.

Euro banknotes and coins came into circulation in 12 countries on January 1, 2002, greeted by a mix of enthusiasm and scepticism from citizens who had to trade in their Deutsche marks, French francs, pesetas and liras.

The euro is now used by 340 million people in 19 nations, from Ireland to Germany to Slovakia. Bulgaria, Croatia and Romania are next in line to join the eurozone — though people are divided over the benefits of abandoning their national currencies.

European Council President Charles Michel argued it was necessary to leverage the euro to back up the EU’s goals of fighting climate change and leading on digital innovation. He added that it was “vital” work on a banking union and a capital markets
union be completed.

The idea of creating the euro first emerged in the 1970s as a way to deepen European integration, make trade simpler between member nations and give the continent a currency to compete with the mighty US dollar.

Officials credit the euro with helping Europe avoid economic catastrophe during the coronavirus pandemic.

“Clearly, Europe and the euro have become inseparable,” Lagarde wrote in a blog post. “For young Europeans… it must be almost impossible to imagine Europe without it.”

In the euro’s initial days, consumers were concerned it caused prices to rise as countries converted to the new currency. Though some products — such as coffee at cafes — slightly increased as businesses rounded up their conversions, official statistics have shown that the euro has brought more stable inflation.

Dearer goods have not increased in price, and even dropped in some cases. Nevertheless, the belief that the euro has made everything more expensive persists.

New look

The red, blue and orange banknotes were designed to look the same everywhere, with illustrations of generic Gothic, Romanesque and Renaissance architecture to ensure no country was represented over the others.

In December, the ECB said the bills were ready for a makeover, announcing a design and consultation process with help from the public. A decision is expected in 2024.

“After 20 years, it’s time to review the look of our banknotes to make them more relatable to Europeans of all ages and backgrounds,” Lagarde said.

Euro banknotes are “here to stay”, she said, although the ECB is also considering creating a digital euro in step with other central banks around the globe.

While the dollar still reigns supreme across the globe, the euro is now the world’s second most-used currency, accounting for 20 percent of global foreign exchange reserves compared to 60 percent for the US greenback.

Von der Leyen, in a video statement, said: “We are the biggest player in the world trade and nearly half of this trade takes place in euros.”

‘Valuable lessons’

The eurozone faced an existential threat a decade ago when it was rocked by a debt crisis that began in Greece and spread to other countries. Greece, Ireland, Portugal, Spain and Cyprus were saved through bailouts in return for austerity measures, and the euro stepped back from the brink.

Members of the Eurogroup of finance ministers said in a joint article they learned “valuable lessons” from that experience that enabled their euro-using nations to swiftly respond to fall-out from the coronavirus pandemic.

As the Covid crisis savaged economies, EU countries rolled out huge stimulus programmes while the ECB deployed a huge bond-buying scheme to keep borrowing costs low.

Yanis Varoufakis, now leader of the DiEM 25 party who resigned as Greek finance minister during the debt crisis, remains a sharp critic of the euro. Varoufakis told the Democracy in Europe Movement 25 website that the euro may seem to make sense in calm periods because borrowing costs are lower and there are no exchange rates.

But retaining a nation’s currency is like “automobile assurance,” he said, as people do not know its value until there is a road accident. In fact, he charged, the euro increases the risk of having an accident.