Brussels, 05/11/2001 (Agence Europe) - On Tuesday, the European Commission authorised the Lombardy region in Italy and Hessen in Germany to pay aid to beef farmers who suffered losses between November 2000 and December 2001 because of the repercussions of the BSE crisis. Having ascertained that there is no overcompensation at either sectoral or at farmer level, the Commission recognised that the current crisis in the beef market is exceptional and therefore justifies the aid (which compensates for losses in income and therefore usually prohibited by EU legalisation).
The Hessen programme grants income aid in the form of subsidised loans to farmers affected by the BSE crisis (of a total of EUR 1.95 million). Hessen will also compensate for up to 100% of the costs for transport and disposal of animal feed containing meat and bone meal produced before 2 December 2000; the cost of BSE tests for cattle over 24 months old and for sheep; and the destruction and economic value of the carcasses and milk for suspected or confirmed BSE cases. The Commission authorised the Hessen aid under Treaty aid rules for facilitating the development of certain economic activities or certain economic areas.
In Lombardy, the EUR 2.32 million aid takes the form of subsidised short term loans to beef farmers who have liquidity problem due to the reduction in income during the BSE crisis period. The region will contribute 3.5% of the loan interest with the rest (at least 1.5%) being borne by the farmers.