State aid for agriculture and fisheries – for another six months

in 2024 April 11 The Commission held consultations with Member States on the ongoing severe economic disruptions, which are particularly affecting the primary agricultural production, fisheries and aquaculture sectors. The Commission also took into account the conclusions of the European Council regarding the importance of a resilient and sustainable agricultural sector for the EU’s food security and strategic self-sufficiency, as well as the request to extend the application of the Temporary State Aid in Crisis and Transitional Conditions system.

In these circumstances, the Commission decided to extend for a limited period Application of Section 2.1 of the Provisional System in Crisis and Transitional Conditions for primary agricultural production, fisheries and aquaculture sectors. Based on this decision, Member States will be able to grant limited amounts of aid to companies operating in these sectors for another six months, until 2024. December 31 Therefore, Member States will have more time to implement support measures if necessary.

This extension does not include an increase in the ceilings for limited aid amounts. Therefore, Member States will be able to continue to provide the following support to companies affected by the crisis or subsequent sanctions and counter-sanctions imposed by, among others, Russia: up to €280,000 for companies operating in the agricultural sector, up to €335,000 for companies operating in the fisheries and aquaculture sectors EUR.

Change accepted does not affect the remaining provisions of the Temporary System under crisis and transition conditions:

• Section 2.1, which allows Member States to grant limited aid amounts to all sectors except primary agricultural production, fisheries and aquaculture, will be phased out by 2024. June 30;
• Section 2.4, which allows Member States to provide aid to compensate for high energy prices, will also be phased out by 2024. June 30;
• Sections 2.2 and 2.3 relating to liquidity support through public guarantees and subsidized loans and Section 2.7 on measures to support the reduction of electricity demand have already been phased out in 2023. on December 31, and
• Sections 2.5, 2.6 and 2.8 on accelerating the green transition and reducing dependence on fossil fuels will continue to apply until 2025. December 31

In addition, taking into account the inflationary pressures felt in recent years and the current circumstances, including the fact that the agricultural sector is adversely affected by high raw material prices, the Commission will also initiate an agricultural sector De minimis revision of the aid regulation. Under this regulation, small amounts of aid to the agricultural sector are not subject to State aid control, as they are considered not to affect competition and trade in the single market. More specifically, Member States may grant up to EUR 20,000 (or up to EUR 25,000 if the Member State has a central de minimis aid register) size aid. For the agricultural sector de minimis the aid rules were last revised in 2019. and by the time they expire (currently 31 December 2027) these rules will need to be reviewed again.

Basic facts

in 2022 March 23 the adopted Temporary system of state aid in crisis conditions allowed the member states to take advantage of the flexibilities provided for in the state aid rules in order to support the economy during Russia’s war against Ukraine. This system was partially changed in 2022. July 20 and 2022 October 28

in 2023 March 9 The Commission has adopted the current Interim Framework in crisis and transition to promote the application of support measures in sectors critical to achieving the Green Deal Industrial Plan transition to a climate-neutral economy. Taking into account the ongoing market disruptions, primarily in the energy sector, in 2023 November 20 The Commission has adopted the extension of the application of provisions related to certain types of aid for a limited period.

Based on 2024 May 2 adopted amendment, according to the Temporary system, under the conditions of crisis and transition period, the following is allowed:

• in accordance with section 2.1: grant limited amounts of any form of assistance, which can be provided until 2024. 31 December: up to EUR 280,000 for agricultural enterprises, up to EUR 335,000 for enterprises in the fishing and aquaculture sectors, and up to 2024 for enterprises in all other sectors. June 30 can be provided up to 2.25 million aid amounts reaching EUR;
• under section 2.4: aid to offset high energy prices. Aid can be provided in any form until 2024. June 30 and will partially compensate the additional costs of companies, especially those that consume a lot of energy, resulting from the exceptionally high prices of gas and electricity;
• under Section 2.5: measures to accelerate the development of renewable energy. Member States may establish schemes to invest in all types of renewable energy resources, including hydrogen from renewable energy sources, biogas and biomethane, as well as energy storage and heat produced from renewable energy sources, including heat pumps. These systems can be based on simplified and fast-track tendering procedures, but must also include adequate safeguards to ensure a level playing field. Support under such systems can be provided until 2025. December 31; after that date, normal state aid rules will continue to apply, including in particular the relevant provisions of the State Aid for Climate and Environmental Protection and Energy (PKAAE) guidelines;
• under Section 2.6: measures to facilitate the reduction of dependence on fossil fuels in industrial processes. In order to further diversify energy supply, Member States can support investments aimed at phasing out fossil fuels, in particular electrification, increasing energy efficiency and switching to hydrogen from renewable energy sources and electrolytic hydrogen under certain conditions. They are also given more opportunities to support the reduction of the dependence of production processes on fossil fuels by switching to hydrogen fuels. Support under such systems can be provided until 2025. December 31; after that date, normal state aid rules will continue to apply;
• under Section 2.8: measures to further accelerate investment in sectors critical to the transition to a climate-neutral economy, enabling the provision of investment support for the production of strategic equipment, namely batteries, photovoltaic panels, wind turbines, heat pumps, electrolyzers and carbon dioxide capture and storage equipment, as well as the production of key components and related processing and production of key raw materials. Support under such measures may be provided until 2025. December 31

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