Tue. Dec 10th, 2024

Brussels, 13 August 2024

The European Commission has approved amendments to an existing Dutch scheme, including a €50 million budget increase, to support agricultural producers in the context of Russia’s war against Ukraine. The amendments were approved under the State aid Temporary Crisis and Transition Framework (“TCTF”), adopted by the Commission on 9 March 2023 and amended on 20 November 2023 and on 2 May 2024.

The Commission approved the original scheme on 16 February 2024 (SA.112447). Under the scheme, the aid consists in limited amounts of aid in the form of direct grants. The measure is open to agricultural producers, who joined the eco-schemes, that are at risk of losing financial liquidity due to the difficulties in the agricultural sector provoked by Russia’s war against Ukraine. In line with the Common Agricultural Policy (CAP), eco-schemes are payment schemes supporting farmers in adopting practices contributing to the protection of environment, climate and animal welfare.

As regards the amendments, the Netherlands notified, among others: (i) a budget increase of €50 million, bringing the overall budget of the scheme to €100 million; and (ii) the extension of the scope of the scheme, to include farmers participating in the eco-schemes in 2024 as beneficiaries of the measure.

The Commission concluded that the amended scheme remains 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 TCTF. On this basis, the Commission approved the amendments under EU State aid rules.

More information on the TCTF can be found here. The non-confidential version of the decision will be made available under the case number SA.115344 in the State aid register on the Commission’s competition website once any confidentiality issues have been resolved.

 

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