Fri. Sep 29th, 2023

Brussels, 5 May 2023

The European Commission has approved an approximately €137 million Portuguese scheme to support primary agricultural producers in the context of Russia’s war against Ukraine. The scheme was approved under the State aid Temporary Crisis and Transition Framework, adopted by the Commission on 9 March 2023 to support measures in sectors which are key to accelerate the green transition and reduce fuel dependencies. The new Framework amends and prolongs in part the Temporary Crisis Framework, adopted on 23 March 2022 to enable Member States to support the economy in the context of the current geopolitical crisis, already amended on 20 July 2022 and on 28 October 2022.

Under the scheme, the aid will take the form of direct grants. The measure will be open to agricultural producers active in a number of sectors, such as horticultural crops, vines, beef cattle and poultry. The purpose of the scheme is to compensate the eligible beneficiaries for part of the additional production costs incurred in light of the price increase of energy and other inputs and to help them overcome their financial difficulties linked to the current crisis.

The Commission found that the Portuguese scheme is in line with the conditions set out in the Temporary Crisis and Transition Framework. In particular, the aid (i) will not exceed €250,000 per beneficiary; and (ii) will be granted no later than 31 December 2023. The Commission concluded that the scheme 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 and Transition Framework. On this basis, the Commission approved the scheme under EU State aid rules.

More information on the Temporary Crisis and Transition Framework and other actions taken by the Commission to address the economic impact of Russia’s war against Ukraine and foster the transition towards a net-zero economy can be found here. The non-confidential version of the decision will be made available under the number SA.107232 in the State aid register on the Commission’s competition website once any confidentiality issues have been resolved.

Source – EU Commission

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