The European Commission decided on Friday 8 May to validate a 650 million euros Dutch scheme for companies in the floriculture, specialty horticulture and potato sectors. The loss of revenue and the additional costs incurred by these companies are related to the collapse in demand during this time of pandemic.
The Netherlands has notified a 650 million euros scheme, of which 600 million euros will be paid to farmers and traders in the floriculture sector and to specialised horticultural companies for the food-service market. The remaining 50 million euros will go to potato producers.
The compensation (direct subsidies) will be able to cover a maximum of 70% of the loss of income or additional costs incurred by farmers and traders in the floriculture and horticulture sectors, and a maximum of 44% of the loss of revenue or additional costs for potato growers.
The Commission assessed the measure under Article 107(2)(b) of the Treaty on the Functioning of the EU and the EU Guidelines for State Aid in the agriculture and forestry sector and in rural areas for the period 2014-2020. The Commission considers the coronavirus outbreak to be an extraordinary event.
Recapitalisation. The European Commission has adopted on the 8th of May a second amendment to extend the scope of the State aid Temporary Framework. This second amendment complements the types of measures already covered, by setting out criteria based on which Member States can provide recapitalisations and subordinated debt to companies in need, whilst protecting the level playing field in the EU. Recapitalisation aid should only be granted if no other appropriate solution is available. Link: https://bit.ly/2WgaPCA (Original version in French by Lionel Changeur)