September 8, 2020
European Commission approves schemes to aid Romanian pig, poultry companies affected by COVID-19
The European Commission has approved two Romanian schemes, with a total budget of €47.4 million (US$56 million), to support companies in the pig and poultry production industries that are impacted by COVID-19.
The schemes were approved under the State aid Temporary Framework.
Under the schemes (one per sector), the budget will be allocated as follows:
- €24.7 million (US$29.1 million) for the pig sector;
- €22.7 million (US$26.8 million) for the poultry sector.
Under the two schemes, public support will be provided in the form of direct grants. The aim of the schemes is to help companies in the pig and poultry breeding sectors address their liquidity needs and continue their activities in order to secure food and feed materials for the food industry and maintain jobs. Each of the schemes is expected to benefit over 1,000 companies.
The commission found that the schemes are in line with the conditions set out in the Temporary Framework. In particular, the grants do not exceed €100,000 (US$118,105) per beneficiary as provided by the Temporary Framework for undertakings active in the primary production of agricultural products; and the support can be granted until December 31.
The commission concluded that the measures are necessary, appropriate and proportionate to remedy a serious disturbance in the economy of an EU Member State, in line with Article 107(3)(b) TFEU and the conditions set out in the Temporary Framework.
On this basis, the commission approved the measures under EU State aid rules.
- Global Ag Media