Brussels, 21/04/2010 (Agence Europe) - On Wednesday 21 April, the European Commission authorised the Bulgarian and Austrian aid schemes for the agricultural sector. The Bulgarian scheme, with a budget of BGN20 million (approximately €10,26 million), seeks to support agricultural holdings active in the primary production, marketing and processing of agricultural products which are encountering difficulties as a result of the current economic crisis. Aid under this scheme can be granted until 31 December 2010 and will take the form of a direct grant. With its budget of approximately €1.2 million, the Austrian aid scheme also seeks to support farmers facing difficulties resulting from the current crisis. Aid under this scheme, too, can be granted until 31 December 2010 and will take the form of direct grants, interest rate subsidies, subsidised loans and subsidised guarantees.
Bulgaria. The scheme is open to all undertakings in the agricultural sector, provided they were not already in difficulty on 1 July 2008 (i.e. before the beginning of the crisis). It is limited in time until 31 December 2010. The scheme provides aid in the form of direct grants, not exceeding €15 000 per undertaking. The notified scheme will be applied at national level and administered by the State Fund Agriculture.
Austria. The scheme is open to farmers in all sub-sectors of primary agricultural production, provided they were not already in difficulty on 1 July 2008. It is limited in time until 31 December 2010 and complements other crisis measures already put in place by the Austrian authorities in application of the Temporary Crisis Framework for state aid. The scheme provides aid in the form of direct grants, interest rate subsidies, subsidised loans and subsidised guarantees. It will be granted by the Bund and the Länder. Aid must not exceed €15,000 per enterprise.
The Commission said both schemes met all the conditions of the Temporary Crisis Framework. The Bulgarian and Austrian authorities had demonstrated that the schemes were necessary, proportional and appropriate to remedy a serious disturbance in the economy, the Commission said in a press release. The Commission decided, therefore, that the schemes could be approved under Article 107(3)(b) of the Treaty on the Functioning of the European Union. (O.L./transl.rt)