ANNOUNCEMENT 18 Jul 2016

In July 2016, the European Commission announced a change in production support.

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising
Inception date: 18 Jul 2016 | Removal date: open ended
Still in force

Production subsidy

 On 18 July 2016, the European Commission announced a second this year (and third within the last 11 months) 500 million support package for European farmers (cf. Related Measures).
State aid for milk producers
Out of the 500 million, 30 percent will be provided to a scheme meant to incentivise reduced milk production due to the currently low market price.
Agricultural state aid for member states
The remaining funds will be available to individual member states to be used from "a menu proposed by the Commission". They will also be able to match the aid provided with the same amount of national funds, thus enlarging the size of the entire package by another potential 350 million EUR.
Updated other schemes
In addition, the EC plans a number of "technical measures" meant to further support the farmers, e.g. by advanced Direct and Rural Development payments or the extension of the intervention period and private storage aid schemes for skimmed milk powder (cf. Related Measures).
Expanded compensation scheme for fruits and vegetables
The Commission also expanded the fruits and vegetables compensation scheme (Related Measures) to allow for withdrawals by producer organizations.
 
A state measure in the GTA database is assessed solely in terms of the extent to which its implementation affects the extent of discrimination against foreign commercial interests. On this metric, the state aid proposed here is discriminatory.
Since this measure only explicitly refers to new state aid with regard to milk, fruits and vegetable farmers, only the corresponding tariff lines were selected as affected.