The European Commission approved, on Thursday 16 April, a €35.5 million Latvian direct grant scheme to support agriculture, fishery, food and school catering sectors in the context of the coronavirus pandemic.
The scheme was authorised under the State Aid Temporary Framework, adopted by the Commission on 19 March and amended on 3 April. A new version of this text should be adopted shortly by the Commission, after consultation with the EU countries (see EUROPE 12465/3).
For Margrethe Vestager, Executive Vice-President in charge of Competition Policy, "people still need to buy food".
On Thursday, the Commission also validated a Latvian scheme to support companies of all sizes active in the agricultural and fishery sector, in the food industry and in the school catering sector that are facing difficulties due to the coronavirus outbreak. Support takes the form of direct subsidies. This will enable these businesses to cope with the liquidity problems caused by the crisis by compensating them for their losses due to the economic downturn.
The maximum amount of aid that may be granted is €100,000 to a company active in the primary agricultural sector, €120,000 to a company active in the fishery and aquaculture sector and €800,000 to a company active in the food and school catering sectors. This is in line with the State Aid Temporary Framework.
The Temporary Framework was amended for the first time on 3 April 2020, increasing the possibilities for public support for research, testing and manufacturing of products to combat the pandemic, protect jobs and further support the economy.
The Commission has proposed to further extend its scope by allowing Member States to recapitalise companies that need it. (Original version in French by Lionel Changeur)