ANNOUNCEMENT 29 Apr 2015
On 1 October 2015, the European Commission decided not to raise objections against an investment aid scheme for large enterprises processing and marketing agricultural products notified in April 2015 by the French government. The total budget of the scheme is 600 million EUR for the years 2015-2020.
NUMBER OF INTERVENTIONS
European Commission case summary (SA.41735)
European Commission letter to France, 09.11.2015
According to France, "The objective of the notified scheme is to improve the competitiveness and enhance the efficiency of undertakings active in the processing and marketing of agricultural products. [...]. The scheme will be in force from the date of its approval by the Commission (01.10.2015) until 31 December 2020. [...] The total planned budget is EUR 600 million, or around EUR 100 million per year." (translation of para. 4, 7 and 8 letter from the EC to France, Brussels 09.11.2015)
Based on the findings of the European Commission, "The scheme in question gives French producers an advantage over other producers in the Union who do not receive the same support. The sector concerned is the agricultural sector which is open to competition at Union level and therefore sensitive to any measure in favor of production in either Member State." (translation of para. 53 letter from the EC to the France, Brussels 09.11.2015)
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.