France to Splash out €250 Million on Struggling Wine Sector

France to Splash out €250 Million on Struggling Wine Sector France wine growers faced with a steep drop in demand. While the France’s government stepped up financial support. Because of pandemic, many industrial sectors around the world suffered a sharp downturn due to reduced demand for their products. France was not isolated from these crises as many industries were affected, especially the wine industry. During a visit to the Menetou-Salon and Sancerre vineyards in the famed Loire Valley, The French Prime Minister Jean Castex said that the state will increase to  €250 million its support plan to wine growing. Beside that, they will request this aid to be distributed as quickly as possible because cash needs are pressing. Castex said on Twitter earlier, "The international situation, the health crisis, a drop in exports: our wine sector faces major difficulties. State support must continue and intensify,” In addition to the impact of Covid-19, France's wine industry has suffered from US tariffs on imports imposed as part of the trade dispute between the European Union and the United States over aircraft subsidies. It worth to mention that France has already provided some support, but the wine industry has called for more action. In May, France cleared a  €140-million crisis mechanism to distil surplus wine into industrial alcohol to be used to produce hand sanitisers. Then in June, the government unveiled an additional  €30 million of support for the wine industry, half of that to support the launch of a private storage scheme for two million hectolitres of surplus wine. While in April, the European Commission decided to support crisis management measures in wine and other agriculture sectors affected by the coronavirus crisis.   You might also be interested in:

Economic Data Statement from the Minister of Finance of France