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Agriculture: EU Commission advances extension of state aid

The proposal sent to the national governments, who will have to provide their opinion /Annex

An extension of the Crisis and Transition State for State Aid (TCTF). This is what the European Commission sent yesterday to the EU member states in order to allow the maintenance of support for the primary agricultural sector in consideration of the persistent market disturbances. "Russia's war against Ukraine and its direct and indirect effects have created significant economic uncertainties," the Commission said in a statement. “This also disrupted trade flows and supply chains and, in its early stages, triggered exceptionally large and unexpected price increases, especially in natural gas and electricity, but also in numerous other inputs, raw materials and goods primaries".

At its last meeting on 21 and 22 March 2024, the European Council underlined the importance of a resilient and sustainable agricultural sector for food security and strategic autonomy of the EU and called on the Commission to continue work on ease the financial pressure on farmers design means of additional support, for example, by extending the TCTF.

In response to a Commission survey of 27 March 2024 on the expiry of parts of the TCTF, Member States underlined that market disruptions resulting from Russia's war against Ukraine persist and particularly affect the primary agricultural sector, which needs to faces major challenges and is in a state of financial stress.

In this context, the Commission is consulting Member States on a limited extension for the primary agricultural sector of the TCTF section, which currently allows Member States until 30 June 2024 to grant limited amounts of aid. The limited extension will allow Member States to continue to provide limited amounts of aid to farmers where necessary and to ensure that crisis support measures are implemented effectively.

The Commission's draft proposal sent to Member States today does not affect the remaining provisions of the TCTF. Member States now have the opportunity to comment on the Commission's draft proposal. The Commission intends to adopt the limited changes to the TCTF as soon as possible, taking into account the feedback received from Member States.

Attached to this EFA News is the full text of the European Commission press release.

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EFA News - European Food Agency