IMPLEMENTATION LEVEL

National

AFFECTED FLOW

Inflow

ANNOUNCED AS TEMPORARY

Yes

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

firm-specific

JUMBO

No

TARIFF PEAK

No
← back to the state act
Inception date: 04 Apr 2017 | Removal date: 31 Dec 2020
Still in force

Interest payment subsidy

According to Poland, "[...] the Polish authorities wish to introduce an aid scheme supporting aid for investment in tangible assets and intangible assets: (a) on agricultural holdings linked to primary agricultural production; (b) in connection with the processing of agricultural products. [...] The total budget amounts to PLN 276 million (ca. EUR 64 million). [The scheme will be in force] From the date of the Commission approval until 31 December 2020. [...] The aid will be granted in form of interest subsidies." (para. 5, 9, 11 and 17 letter from the EC to Poland, Brussels 04.05.2017)

Based on the findings of the European Commission, "The schemes in question confer an advantage on their recipients who will have access to loans/guarantees at conditions which are more favourable than those available on the market [...]. This advantage is granted through State resources [...], is imputable to the State [...] and it benefits only undertakings active in the sectors of primary agricultural production and processing of agricultural products in Poland [...]. According to the case law of the Court of Justice, the mere fact that the competitive position of an undertaking is strengthened compared to other competing undertakings, by giving it an economic benefit which it would not otherwise have received in the normal course of its business, points to a possible distortion of competition. [...] The beneficiaries of aid operate in the agriculture sector which is open to competition at EU level and therefore sensitive to any measure in favour of the production in one or more Member States. Therefore, the present schemes are liable to affect trade between Member States." (para. 54 and 55 letter from the EC to Poland, Brussels 04.05.2017)

In the GTA database, the determination of whether a policy instrument discriminates against foreign commercial interests turns on whether it creates or alters the relative treatment of domestic firms versus foreign commercial interests. On this metric, the state aid proposed here is discriminatory because the state aid is not available to competing firms outside of the implementing jurisdiction.

AFFECTED COUNTRIES

MAP
TABLE
EXPORT

AFFECTED SECTORS AND PRODUCTS

011 Cereals
012 Vegetables
013 Fruits & nuts
014 Oilseeds & oleaginous fruits
015 Edible roots & tubers with high starch or inulin content
016 Stimulant, spice & aromatic crops
017 Pulses (dried leguminous vegetables)
018 Sugar crops
019 Forage; natural rubber; living plants; raw vegetable materials
021 Live animals
022 Raw milk
023 Eggs of hens or other birds in shell, fresh
024 Reproductive materials of animals
029 Other animal products

Please report this page in case you detect an inaccuracy in its content.