The European Commission decided on Tuesday 12 January to open an in-depth investigation to determine whether Czech aid to certain large companies to support crop and livestock insurance is in line with EU rules on State Aid in the agricultural sector.
The Czech Republic has notified its intention to grant €25.8 million in public aid for crop and livestock insurance premiums for large agricultural enterprises.
The Commission’s assessment revealed that this aid had already been granted in the past to beneficiaries that the Czech authorities had wrongly qualified as SMEs, when in fact they were large companies.
The Commission has doubts that past aid granted for crop and livestock insurance premiums is in line with the 2014 guidelines on state aid in the agriculture sector for large enterprises. “It is unlikely that the Czech authorities could ensure that the aid granted to large undertakings had an incentive effect”, it said in a statement. It doubts that the measure has a real incentive effect, i.e., that the beneficiaries would not conclude insurance contracts in the absence of public support.
Orchards/Irrigation. In addition, the Commission approved two Czech investment aid schemes for restructuring orchards and irrigation. The estimated budget for these schemes is €52.4 and €21 million, respectively. According to the Commission, the aid is in line with the conditions set out in the 2014 guidelines for State Aid in the agriculture sector for all types of beneficiaries. (Original version in French by Lionel Changeur)