ANNOUNCED AS TEMPORARYYes
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.
⚑ Please report this page in case you detect an inaccuracy in its content.