A six-month extension to the State aid Temporary Crisis Framework to address persisting market disturbances in the agriculture, fisheries, and aquaculture sectors has been announced by the European Commission today (Thursday, May 2).
The extension allows member states to provide limited amounts of aid to companies active in these sectors until December 31, 2024. It will give member states more time to implement support measures if needed.
The State aid Temporary Crisis Framework was adopted on March 23, 2022, to enable EU member states to use the flexibility foreseen under state aid rules to support the economy in the context of Russia’s war against Ukraine.
Countries will continue to be able to provide companies affected by the crisis or by the subsequent sanctions and countersanctions, including by Russia, with up to €280,000 for the agricultural sector and up to €335,000 for the fisheries and aquaculture sectors.
Member states earlier this month highlighted the importance of a “resilient and sustainable” agriculture sector for food security and the EU’s strategic autonomy, and encouraged the commission to extend the framework.
EU state aid
The six-month extension to the State aid Temporary Crisis Framework has only been granted for the agriculture, fisheries and aquaculture sectors. Member states will only be allowed to grant up to €2.25 million in all other sectors until June 30, 2024.
The aid, which can be granted in any form in principle until June 2024, will partially compensate companies, in particular intensive energy users, for additional costs due to exceptional gas and electricity price increases.
Member states can set up schemes for investments in all renewable energy sources, including renewable hydrogen, biogas and biomethane, storage and renewable heat, including through heat pumps. Aid may be granted until December 31, 2025.
European Commission
The European Commission will also launch a revision of the Agricultural de minimis Regulation, in light of the inflationary pressure in recent years and the, amongst others, high commodity prices affecting the agricultural sector.
The Agricultural de minimis Regulation exempts small amounts of support in the agricultural sector from state aid control since they are deemed to have no impact on competition and trade in the Single Market.
Member states can grant support to the agri-sector of up to €20,000 per beneficiary (€25,000 if the member state has a central register to register de minimis aid) over a period of three years without prior notification to the commission for approval.
The agricultural de minimis rules were last revised in 2019 and will need a revision before they are currently set to expire on December 31, 2027, according to the commission.