Is Brussels trying to put a cork in our wine industry?

Just as the popularity of Chateau Anglais is soaring, the European Commission wants to limit the planting of new vineyards for the next six years.

The rules would punish countries such as Britain, whose small wine industry is expanding.

Most vines here were planted in the last decade and have not received EU subsidies.

By contrast, the rules favour countries such as France, Germany and Italy, whose vineyards are well-established and have been subsidised by EU taxpayers for years.

A House of Lords committee issued a report yesterday accusing the EU of 'economic nonsense' by imposing an 'artificial planting ban' when it had allowed the EU wine lake to swell by subsidising other countries.

The report by the Lords EU committee criticised Brussels for trying to prevent new winegrowers from breaking into the market and protecting 'uncompetitive' producers.

Before this year, Britain was unaffected by EU rules on wine production because its industry was so small.

Brussels bureaucrats have banned new vineyards in EU countries which produce more than 25,000 hectolitres - or 3.3million bottles - of wine until 2010.

The Commission wants to extend the ban even further to 2013.

Britain will be punished because, according to Defra, it now produces more than 3.3million bottles of wine.

Last year's hot summer triggered a boom in wine production, which is expected to increase still further as climate change brings warmer summers.

Experts say that the soil and climate in South-East England are now almost identical to those of Champagne.

A source close to the committee said: "The proposals by Brussels on new plantings will stifle the British wine industry, which is currently enjoying a boom."

The committee questioned why Ministers were 'acquiescing' to Brussels by agreeing to the extension of the ban until 2013 if the Commission doubled the limit to 50,000 hectolitres.

Even then, if Britain's wine industry continued to grow it could still be affected.

The report said: "It would plainly be economic nonsense to impose an artificial planting ban on a member state whose vineyards can sell all their produce and have no need of EU subsidies."