Brussels (Brussels Morning Newspaper) – EU Commission authorises €400 million Romanian State aid plan to compensate farmers impacted by severe drought.
The European Commission has approved, under EU State aid regulations, a €400 million (RON 2 billion) Romanian scheme to reimburse farmers for damages mourned due to the extreme drought in the period between September 2023 and August 2024.
How will farmers be compensated for drought damages?
As reported by the EU Commission, the scheme is available to agricultural producers of 39 selected crops (such as wheat, triticale, rye, barley, oats, rapeseed, peas, sunflower and maize) that were directly impacted by the severe drought.
To aid from the support, the agricultural producers must have failed more than 30% of their autumn 2023 – summer 2024 crops as a consequence of the drought. Under the scheme, the aid will take the form of direct assistance. The maximum portion of aid is €200 (RON 1,000) per hectare for a 100% loss, not surpassing 30% of the eligible costs. The undertaking will operate until 31 December 2024.
Why did the eu commission approve the Romanian state aid plan?
According to the Commission, it assessed the scheme under EU State aid regulations, especially under Article 107(3)(c) of the Treaty on the Functioning of the European Union, which authorises Member States to back the development of certain economic actions under certain conditions, and the 2023 Guidelines for State aid in the agricultural and forestry sectors and in rural areas.
The EU Commission also figured that the scheme is necessary and suitable to compensate Romanian farmers for the casualties incurred due to this severe climatic event. Furthermore, the Commission discovered that the scheme is proportionate, as it is restricted to the minimum necessary, and has a limited effect on competition and trade between Member States. On this basis, the Commission endorsed the Romanian scheme under EU State aid rules.
