ANNOUNCEMENT 29 Dec 2010In December 2010, the government of Romania announced a change in private-sector financial support.
NUMBER OF INTERVENTIONS
European Commission Report -
this measure is reported in the WTO/OECD/UNCTAD "REPORT ON G20 TRADE MEASURES (MID-OCTOBER 2010 TO APRIL 2011)" . Available from < http://www.oecd.org/dataoecd/20/46/47955250.pdf >
The government of Romania has introducedtemporary state aid for primary production of agricultural products from 29 December 2010 until 31 December 2011. EU State Aid SA. 32174 (2010/N).
In Romania, 6.4 of the GDP comes from agriculture, and 29.8 of the population make their living in the field of agriculture. According to the Romanian authorities the globalfinancial crisis has had a major negative impact on the country'sagricultural sector. In addition, the global prices of agriculturalproducts have been constantly increasing.
The aid consist in direct subsidies granted to any operator (producers and research institutes/universities)active in the production of primary agricultural product. The number of beneficiaries is estimated to be more than a thousand.
The budget is estimated to 1 300 000 000 lei (303 738 317 EUR).
The EC considered the related measure as state aid pursuant to art. 107 (1) TFEU and gave the following assessment:
"The aid to be implemented in the frame of the scheme are considered as state aid since they are financed by the state, favor specific enterprise and are likely to distort competition due to the importance of the Romanian agricultural sector." (par. 16 of the letter from the EC to Romania - Bruxelles, 20 December 2010 C (2010) 'translated from French' )
The EC has however considered the related measure as compatible with the internal market.
A state measure in the GTA database is assessed solely in terms of theextent to which its implementation affects the extent of discriminationagainst foreign commercial interests. On this metric, the state aidproposed here is discriminatory.