Brussels, 30/10/2002 (Agence Europe) - On Wednesday, the European Commission decided to authorise Germany (Bavaria) to pay national aid worth a total of EUR 335 million over four years for the introduction of a new investment programme. The duration of the programme is limited until 31 December 2005. The three main objectives of the programme are the improvement of the production and working conditions on farms, the promotion of environmentally friendly production methods and more animal-friendly livestock farming and the diversification of farm incomes.
The aid is in the form of direct grants or interest-rate subsidies for loans on the capital market. The maximum overall aid intensity is 40% (percentage of the eligible costs).
For investments made by young farmers within five years start-up, an additional 5% may be granted. The Commission points out that these farming investment measures could have been funded by the EU under the 1999 rural development regulation, but that the Bavarian government decided to fund the programme itself. The Commission notes that the aid meets EU guidelines on state aid for farming.