The European Commission approved Greek scheme of 50 million euros to support the livestock sector in the context of Russia's invasion of Ukraine.

The Greek measure for the livestock sector

Greece notified to the Commission, under the Temporary Crisis Framework, a €50 million scheme euros to support the livestock sector in the context of Russia's invasion of Ukraine. Under this measure, the aid will take the form of direct grants. The measure will be aimed at companies operating in the livestock sector and affected by the increase in input costs due to the current geopolitical crisis. Eligible beneficiaries from the livestock sector will be able to receive an amount of aid equal to:

• 2% of turnover for VAT purposes in 2021
• 2% of their gross revenue in 2020, depending on whether or not they were subject to VAT in 2021

The Commission found that the Greek scheme is in line with the conditions set out in the Temporary Crisis Framework. In particular, the aid:

• will not exceed EUR 35 000 per beneficiary
• will be granted no later than 31 December 2022

The Commission has concluded that the Greek scheme is necessary, appropriate and proportionate to remedy a serious disturbance in the economy of a Member State, in accordance with Article 107(3)(b) TFEU and the conditions set out in the crisis temporary framework. On this basis, the Commission approved the aid measure under EU State aid rules.

History

On 23 March 2022, the European Commission approved the State aid crisis temporary framework so that Member States can make use of the flexibility provided by State aid rules to support the economy in the context of Russia's invasion of Ukraine. The Temporary Crisis Framework provides that Member States may grant the following types of aid:

• Περιορισμένα ποσά ενίσχυσης, σε οποιαδήποτε μορφή, έως 35 000 ευρώ για τις πληττόμενες από την κρίση επιχειρήσεις που δραστηριοποιούνται στους τομείς της γεωργίας, της αλιείας και της υδατοκαλλιέργειας και έως 400 000 ευρώ ανά επιχείρηση που πλήττεται από την κρίση σε όλους τους άλλους τομείς
• Liquidity support in the form of State guarantees and subsidised loans
• Aid to compensate for high energy prices. The aid, which can be granted in any form, will partially compensate undertakings, especially the most energy-intensive ones, for the additional costs resulting from exceptional increases in gas and electricity prices. The total aid per beneficiary may not exceed 30% of the eligible costs. The ceiling is 2 million euros at a given time. Where the undertaking suffers operating losses, further aid may be needed to ensure the continuation of an economic activity. Therefore, for energy-intensive users, the aid intensities are higher. Member States may grant aid which exceed those ceilings, up to 25 million euro. Για τις επιχειρήσεις που δραστηριοποιούνται σε τομείς και υποτομείς που πλήττονται ιδιαίτερα, έως 50 εκατ. euro.

Russian-controlled entities subject to sanctions will be excluded from the scope of these measures.

The Temporary Crisis Framework includes a number of safeguards

• Proportionate methodology: There should be a link between the amount of aid that can be granted to undertakings and the scale of their economic activity and exposure to the economic effects of the crisis.
• Eligibility conditions: for example by defining energy-intensive users as undertakings for which the purchase of energy products accounts for at least 3% of the value of their production.

The Temporary Crisis Framework will apply until 31 December 2022. In order to provide legal certainty, the Commission will assess before that date whether it will need to be extended. During the period of application of the framework, the content and scope will be subject to review by the Commission. They will be taken into account developments in energy and other factor markets. As well as the general economic situation. The Temporary Crisis Framework complements the broad possibilities for Member States to design measures in line with existing EU state aid rules. For example, EU state aid rules allow Member States to help companies facing liquidity shortages and companies in need of emergency rescue aid. In addition, Article 107(2)(b) of the Treaty on the Functioning of the European Union enables Member States to compensate undertakings for damages directly caused by extraordinary circumstances, such as those caused by the current crisis. In addition, on 19 March 2020, the Commission adopted a Temporary Framework in the context of the coronavirus outbreak. The COVID Temporary Framework was amended on:

• Apr 3, 2020
• May 8, 2020
• 29 June 2020
• Oct 13, 2020
• Jan 28, 2021
• November 18, 2021