Brussels, 24 October 2024
The European Commission has approved, under EU State aid rules, a €400 million (RON 2 billion) Romanian scheme to compensate farmers for damages suffered due to the severe drought in the period between September 2023 and August 2024.
The scheme is open to agricultural producers of 39 selected crops (such as wheat, triticale, rye, barley, oats, rapeseed, peas, sunflower and maize) that were directly affected by the severe drought. To benefit from the aid, the agricultural producers must have lost more than 30% of their autumn 2023 – summer 2024 crops as a result of the drought. Under the scheme, the aid will take the form of direct grants. The maximum amount of aid is €200 (RON 1,000) per hectare for a 100% loss, not exceeding 30% of the eligible costs. The scheme will run until 31 December 2024.
The Commission assessed the scheme under EU State aid rules, in particular under Article 107(3)(c) of the Treaty on the Functioning of the European Union, which allows Member States to support the development of certain economic activities under certain conditions, and the 2023 Guidelines for State aid in the agricultural and forestry sectors and in rural areas. The Commission found that the scheme is necessary and appropriate to compensate Romanian farmers for the losses incurred due to this extreme climatic event. Furthermore, the Commission found that the scheme is proportionate, as it is limited to the minimum necessary, and has a limited impact on competition and trade between Member States. On this basis, the Commission approved the Romanian scheme under EU State aid rules.
The non-confidential version of the decision will be made available under the case number SA.116052 in the State aid register on the Commission’s competition website once any confidentiality issues have been resolved.
Source – EU Commission