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The State Aid Control Officer Ms Stella Michailidou informs that in the recent newsletter of the State Aid Unit (MOKE) of the Centre International European and Economic Law (IEEL) states that the Commission has sent to Member States a draft proposal for a limited extension of the Temporary Crisis and Transition Framework 2023, as regards its provisions for the primary agricultural sector, in view of the ongoing market disturbances. It is therefore consulting Member States on this issue.
The Bulletin states that the Commission has noted that the war in Ukraine and its direct and indirect consequences have caused significant economic uncertainties. The war has caused disruptions to trade flows, supply chains and extremely large and unexpected price increases, particularly for gas and electricity, but also for many other inputs and raw materials and primary commodities.
At its last meeting, held on 21 and 22 March 2024, the European Council underlined the importance of a resilient and sustainable agricultural sector for the food security and strategic autonomy of the European Union (EU) and invited the Commission to take forward work to reduce the economic pressure on farmers by designing additional support instruments, such as by extending the temporary crisis and transition framework. In response to a Commission inquiry of 27 March 2024 on the expiry of parts of the Temporary Crisis and Transition Framework 2023, Member States underlined that, as a result of the war in Ukraine, market disruptions continue to occur, affecting in particular the primary agricultural sector, which is facing significant challenges and economic pressure.
Against this background, in April 2024, the Commission consulted Member States on a limited extension for the primary agricultural sector of the part of the Temporary Crisis and Transition Framework (TCF), which currently allows Member States until 30 June 2024 to grant limited amounts of aid. The Committee also took into account the conclusions of the European Council of 17 and 18 April on the importance of a resilient and sustainable agricultural sector for the EU's food security and strategic autonomy, as well as the Council's invitation to continue work on a possible extension of the MFF 2023. The draft Commission proposal sent to Member States does not affect the remaining provisions of the Temporary Crisis and Transition Framework 2023.
In this context, the Commission has decided to adopt a limited extension of Chapter 2.1 of the MSFP for the primary sector, as well as for the fisheries and aquaculture sectors. This decision, to delay the phasing out of the MSFM 2023, allows Member States to grant limited amounts of aid to undertakings active in these sectors for more than six months, i.e. until 31 December 2024.
The extension does not entail an increase in the ceilings foreseen for the limited amounts of aid. Therefore, Member States will continue to be able to grant enterprises affected by the crisis or by subsequent sanctions and countermeasures, including from Russia, up to €280,000 for the agricultural sector and up to €335,000 for the fisheries and aquaculture sectors.
In parallel with the amendment, the Commission will also launch a revision of Regulation 1408/2013 on de minimis agricultural aid, in the light of the inflationary pressures of recent years and the current context, which is characterised, inter alia, by high commodity prices affecting the agricultural sector.
(AS/EATH)
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