Brussels (Brussels Morning Newspaper) – EU Commission endorses €1 billion Italian State aid scheme to assist farmers affected by floods and landslides.
The European Commission has approved, under EU State aid regulations, a €1 billion Italian scheme to help farmers impacted by flood and landslide events in certain parts of Italy.
Italy notified the EU Commission of its programs to introduce a €1 billion scheme to back companies active in the agricultural sector impacted by the flood and landslide events that happened in May 2023 in the areas of Emilia-Romagna, Tuscany and Marche.
The purpose of the scheme is to fund investments aimed at fixing the agricultural production potential damaged by floods and landslides. To compensate companies involved in primary agricultural production, processing and trade of agricultural products for the damages suffered.
What criteria were used to evaluate the aid scheme?
The EU Commission evaluated the scheme and found that the floods and landside events were categorised as natural disasters and that the scheme serves only to reimburse for the damages effectively caused by the natural disasters. Furthermore, it presents an appropriate means to ensure that there will be no overcompensation.
The Commission also evaluated the investment part scheme and figured that the aid encourages the development of economic activity, i.e. primary agricultural production.
The scheme is essential and appropriate to ensure that farmers implement efforts to immediately restore their agricultural production and continue their activities when they do not have the necessary resources to repair their damaged assets.
How does this support align with EU agricultural policies?
Also, the scheme reinforces the objectives of key EU policy initiatives, such as the Common Agricultural Policy. Hence, the Commission supported the Italian scheme under EU State aid rules.
The EU 2022 Agricultural Guidelines guide how the EU Commission will estimate the compatibility of aid measures in the sector. The Guidelines form a flexible, fit-for-purpose enabling framework to support Member States provide the necessary support and contribute, among other things, to the goals of the Common Agricultural Policy. Moreover, the 2022 Agricultural Guidelines aim to support Member States design national measures and meet national and EU objectives at the least possible cost for taxpayers and without undue contortions of competition in the Single Market.
