EU: A few months’ extension for state aid in agriculture and fishing
The validity of certain provisions of the Temporary Crisis Framework for State Aids (TCTF) is extended for 6 months, which are intended to address the ongoing market disturbances and in particular in the fields of agriculture and fisheries in the EU
In particular, on 11 April 2024, the Commission held dconsultations with the Member States on the ongoing severe disruption of the economy, which affects in particular the primary sectors of Georgia, fisheries and aquaculture. At the same time, it took into account the conclusions of the European Council of 17 and 18 April 2024 on the importance of a resilient and sustainable agricultural sector for the EU’s food security and strategic autonomy, as well as the Council’s exhortation to continue work on a possible expansion of the TCTF.
In this context, the Commission decided to approve the limited extension of section 2.1 of the TCTF for the primary agricultural sector, as well as for the fisheries and aquaculture sectors. This decision, to delay the phasing out of the TCTF, allows member states to grant limited amounts of aid to companies active in the sectors in question for an additional six months, until 31 December 2024.
It should be noted that this extension does not entail an increase in the upper limits, provided for the aid amounts. Therefore, member states will continue to be able to provide to companies affected by the crisis or the subsequent sanctions and countermeasures, including from Russia, up to €280,000 for the agricultural sector and up to €335,000 for the fisheries and aquaculture sectors.
Revision of the EU Regulation for de minimis aids
At the same time, with this amendment, the Commission will launch a revision of the de minimis agricultural aid regulation in light of the inflationary pressures of recent years and the current framework characterized, among others, by the high commodity prices affecting farm sector.
This regulation exempts small amounts of support in the agricultural sector from State aid control, as they are considered not to affect competition and trade in the single market.
In particular, Member States may grant support in the agricultural sector up to EUR 20,000 per beneficiary (EUR 25,000 if the Member State has a central register for the registration of de minimis aid) for a period of three years without prior notification to the Commission for approval.
It should be noted that the EU de minimis agricultural support rules they were last revised in 2019 and will need to be revised again before their expiry, which is set for 31 December 2027.