EU ministers will insist on increasing the “de minimis” state aid for farmers to 50,000 euros

A coalition of 15 EU countries intends to increase de minimis state aid to the agricultural sector. Euractiv writes with reference to a note circulated among member states. The EU agriculture ministers are planning to discuss this proposal in detail at a meeting on Monday, April 29, UNN reports .

Details

Diplomatic sources told Euractiv that the country's representatives will advocate for an increase in the maximum "de minimis" amount to €50,000 per farm for three years before next week's meeting of the Agriculture and Fisheries Council (AGRIFISH).

It is noted that the current de minimis regulation allows Member States to allocate small amounts of state subsidies to a company without official notification or prior approval from the Commission, as these amounts are considered non-market distortions.

Germany will lead the event with the support of the delegations of France, Austria, Croatia, Romania, Hungary, Cyprus, Slovenia, Latvia, Luxembourg, Malta, Slovakia, Estonia, Poland, and Bulgaria.

We will have a debate. ... I expect there will be different voices at the table, because “not all member states have the same means to support their agricultural holdings.

Currently, the maximum amount of small subsidies that can be granted to an individual company in agriculture and fisheries is limited to EUR 20,000 and EUR 30,000, respectively, for three years.

Optional

During the 17-18 Summit, EU leaders called for an extension of the current framework for temporary state aid, which has allowed EU countries to allocate billions to the agricultural sector in recent years, as well as an increase in de minimis aid for agriculture.

On April 11, the Commission announced that it is consulting with EU countries on extending the Temporary Crisis and Transition Framework (TCTF) to allow governments to further reduce financial pressure on farmers "in view of the ongoing market disruption.

According to the TCTF, until June 30, 2024, member states can provide up to €280,000 and €335,000 to individual companies operating in the agriculture and fisheries sectors.

Context

At the Council on February 26, Italy presented a note calling on the Commission to adopt a timeframe to overcome the crisis in the agricultural sector, to ensure a European moratorium on farmers' debts in different member states, and to increase the de minimis in the agricultural sector to 50 thousand euros.

Former Italian Prime Minister Enrico Letta's recent report on the EU single market warned that the relaxation of state aid rules in response to the recent crisis has distorted competition between EU countries due to their different spending power.