European Commission Approves €10 Million Slovak Scheme to Support Agricultural Product Processors and Food Production

Strategic Insights -

The European Commission has approved a €10 million Slovak scheme to support agricultural product processors and the food production sector in the context of Russia's war against Ukraine. The scheme was approved under the State aid Temporary Crisis Framework, adopted by the Commission on 23 March 2022 and amended on 20 July 2022. The measure aims to provide liquidity to companies in the affected sectors, allowing them to continue their activities. Executive Vice-President Margrethe Vestager stated, "Russia's unjustified war against Ukraine continues, with its heavy impact on many sectors of the economy, including on food producers. This €10 million scheme approved today will enable Slovakia to support these companies, providing them with the necessary liquidity they need to continue their activities."

Key Takeaways:

  • The European Commission has approved a €10 million Slovak scheme to support agricultural product processors and the food production sector in the context of Russia's war against Ukraine.
  • The scheme was approved under the State aid Temporary Crisis Framework, adopted by the Commission on 23 March 2022 and amended on 20 July 2022.
  • The measure will be open to companies of all sizes and active in the sectors of processing of agricultural products and/or food production.
  • Eligible beneficiaries will be entitled to receive limited amounts of aid in the form of direct grants, not exceeding €500,000 per beneficiary.
  • The aid will be granted no later than 31 December 2022, and the scheme will be in place until the end of 2022.
  • The measure is necessary, appropriate, and proportionate to remedy a serious disturbance in the economy of a Member State, in line with Article 107(3)(b) TFEU and the conditions set out in the Temporary Crisis Framework.
  • The Temporary Crisis Framework includes a number of safeguards, such as proportional methodology and eligibility conditions.
  • The Commission is continuously monitoring the application of the Temporary Crisis Framework to take account of the evolving situation.

Statistics:

  • €10 million Slovak scheme approved to support agricultural product processors and the food production sector.
  • €500,000 maximum amount of aid per beneficiary.
  • 31 December 2022 deadline for aid to be granted.
  • €62,000 maximum amount of aid in the agriculture sector.
  • €75,000 maximum amount of aid in the fisheries and aquaculture sector.

Sources:

  • European Commission IP/22/6129
  • Official Journal of the European Union
  • State aid Temporary Crisis Framework
  • Temporary Crisis Framework draft proposal to prolong and adjust
  • Council's political agreement on emergency market intervention
  • EU State aid rules, Article 107(2)(b) of the Treaty on the Functioning of the European Union
  • COVID Temporary Framework
  • State aid register (http://ec.europa.eu/competition/state_aid/register/)
  • Competition Weekly e-News (https://ec.europa.eu/newsroom/comp/newsletter-archives/view/service/2012)
  • European Commission's competition website (http://ec.europa.eu/competition/index_en.html)