Brussels, 24 February 2023
The European Commission has found the re-introduction of a Czech scheme to support the primary agricultural production sector in the context of the Russia’s war against Ukraine to be in line with the State Aid Temporary Crisis Framework, adopted by the Commission on 23 March 2022 and amended on 20 July 2022 and on 28 October 2022.
The scheme is a re-introduction of a Czech measure that the Commission initially approved in July 2022 (SA.103619) and that expired on 31 December 2022. Czechia notified to the Commission its intention to reintroduce the scheme with a budget increase by €20.9 million (CZK 500 million), bringing the overall budget of the scheme to around €42 million (CZK 1 billion). Under the scheme, the aid takes the form of limited amounts of aid in form of direct grants. The aid is intended to reduce the principal of operating loans granted to small and medium-sized companies active in the primary agricultural production sector. The aid intensity amounts to 50% of the unpaid loan amount, up to a maximum of approximately €10,450 (CZK 250 000).
The Commission found that the Czech scheme, as re-introduced, continues to be in line with the conditions set out in the Temporary Crisis 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 Framework. On this basis, the Commission approved the scheme under EU State aid rules.
More information on the Temporary Crisis Framework and other actions taken by the Commission to address the economic impact of Russia’s war against Ukraine can be found here. The non-confidential version of the decision will be made available under the number SA.106204 in the State aid register on the Commission’s competition website once any confidentiality issues have been resolved.
Source – EU Commission