The EU has extended the derogation on State Aid by six-months certain to address persisting market disturbances for sectors such as fisheries. Photo: CEPESCA
European Commission Adopts Limited Prolongation of State Aid Crisis Tools to Support Agriculture and Fisheries Sectors
The European Commission has announced an amendment to the State aid Temporary Crisis and Transition Framework (TCTF) to extend certain provisions aimed at addressing persistent market disturbances in the agriculture and fisheries sectors.
This decision comes in response to ongoing challenges faced by farmers and fishing sector due to market disruptions caused by various factors, including Russia’s war against Ukraine.
The amendment, adopted by the Commission, extends Section 2.1 of the TCTF for the primary agricultural sector, as well as the fisheries and aquaculture sectors, by six months. This extension allows Member States to continue providing limited amounts of aid to companies operating in these sectors until December 31, 2024, giving them more time to implement support measures if necessary.
However, it’s important to note that this prolongation does not include an increase in the ceilings set for the limited amounts of aid. Member States will retain the ability to provide aid of up to €280,000 for the agricultural sector and up to €335,000 for the fisheries and aquaculture sectors.
Margrethe Vestager, Executive Vice-President in charge of competition policy, commented on the decision, emphasizing the Commission’s commitment to supporting farmers and fishers during challenging times. She highlighted the importance of temporary state aid tools in addressing specific crisis needs while also acknowledging the ongoing recovery of Europe from various crises.
In addition to the amendment, the Commission will launch a revision of the Agricultural de minimis Regulation, which exempts small amounts of support in the agricultural sector from State aid control. This revision aims to address inflationary pressure in recent years and ensure flexibility in providing support to farmers.
The State aid Temporary Crisis and Transition Framework was initially adopted in response to Russia’s war against Ukraine, enabling Member States to provide support to the economy. Over time, the Framework has been adjusted to meet evolving needs, with today’s amendment reflecting the Commission’s commitment to supporting key sectors such as agriculture and fisheries.
The announcement underscores the Commission’s efforts to foster resilience and sustainability in the agricultural sector while addressing market disruptions and promoting recovery in the aftermath of various crises.
https://ec.europa.eu/commission/presscorner/detail/en/ip_24_2332
Source: Press Release