The European Commission has launched a public consultation inviting interested parties to comment on a draft amendment to regulations for state aid in the EU agriculture sector.
Under current EU rules, state aid that does not need to be notified to the commission, and does not require commission approval, is limited to €25,000 over three years per beneficiary in the agriculture sector.
This is referred to as ‘de minimis’ aid. National limits also apply, capping the total amount of de minimis aid a member state can pay out.
Following the most recent revision to this regulation in 2019, the current regulation is set to expire in 2027, with a further review planned ahead of this.
However, due to recent decisions and conclusions by several EU institutions with the apparent aim of bolstering the competitiveness of the agriculture sector, the commission has launched a review of the de minimis regulation ahead of the planned review.
The draft amendments would increase the €25,000 limit to €37,000, which the commission said will account for inflation.
The method for calculating each country’s national cap would also be amended.
Currently, national caps are based on the value of agricultural output between 2012 to 2017. Under the proposed review, this reference period will be expanded up to 2023, which the commission said would take account of the increased value of agricultural production in recent years.
The proposals would also make it mandatory for member states to set up a central register of farmers receiving de minimis aid, in order to “increase transparency and reduce administrative burden on farmers”. Currently, such registers are only voluntary for member states.
Interested parties are invited to submit their views on the draft amendment by July 21. The commission said that it will discuss the proposed changes with member states, and that it plans to adopt the amendments to the agricultural de minimis rule “as soon as possible”.
EU trade measures for Ukraine
In other EU news, the commission has announced that the suspension of import duties and quotas on Ukrainian exports to the EU have been extended for another year.
The aim of these autonomous trade measures (ATMs) is to support Ukraine’s economy in the wake of the Russian invasion.
According to the commission, the latest measures which have come into force include provisions that will protect producers within the EU in some sectors from being undercut by the cheaper Ukrainian produce.
Farm organisations in these sectors had been seeking these protections in the run up to the finalisation of the renewal of the ATMs.