A €1 billion scheme to support farmers affected by floods and landslides in certain regions of Italy has been approved by the European Commission today (Wednesday, October 9).

The funding will support companies active in the agricultural sector affected by the flood and landslide events in May 2023 in the regions of Emilia-Romagna, Tuscany and Marche.

The scheme will provide investment support aimed at restoring the agricultural production potential damaged, and compensate companies active in primary agricultural production, processing and marketing of agricultural products.

Italy had notified the commission of its plans to introduce a €1 billion scheme to support the farmers affected, which was subsequently approved under EU state aid rules.

The scheme, which is open to companies of all sizes, will run until May 1, 2027. Under the scheme, the aid will take the form of direct grants covering:

Up to 100% of the eligible investment costs incurred for restoring the agricultural production potential up to the level existing before the natural disasters;
Up to 100% of the damages incurred by companies as a direct consequence of the natural disasters. The eligible costs include compensation for:

The commission assessed the scheme under article 107 (2) (b) of the Treaty on the Functioning of the EU, which allows member states to grant aid to make good the damage caused by natural disasters or exceptional occurrences.

The commission found that the floods and landside events were classified as a "natural disaster", and that the scheme serves only to compensate for the damages effectively caused by the events.

The commission also introduces a mechanism to ensure there will be no overcompensation, and found that the scheme brings about "positive effects" that outweigh any potential distortion of competition and trade in the EU.