ANNOUNCEMENT 22 May 2018

On 13 March 2018, the French authorities notified the European Commission of their intention to introduce an aid scheme for entities operating in the agricultural and agri-food sector. The scheme is in force from May 2018 to the end of 2020.

NUMBER OF INTERVENTIONS

2

  • 2 harmful
  • 0 neutral
  • 0 liberalising

SOURCE

Letter to the Member State - Published on 21 September 2018, SA.50627 (2018/N) Aides à la coopération dans le secteur agricole et agroalimentaire pour la période 2018-2020: http://ec.europa.eu/competition/state_aid/cases/273720/273720_1994632_66_2.pdf
European Commission state aid case SA.50627 Aides à la coopération dans le secteur agricole et agroalimentaire pour la période 2018-2020: http://ec.europa.eu/competition/elojade/isef/case_details.cfm?proc_code=3_SA_50627

Inception date: 22 May 2018 | Removal date: 31 Dec 2020

State loan

On 22 May 2018, the French authorities introduced an aid scheme for companies operating in the agricultural and agri-food sector following the approval by the European Commission on the same day. Under the scheme, companies and other eligible entities operating in or cooperating with the agricultural and agri-food sector can apply for financial support for certain activities.

Supported activities relate to primary production, processing and marketing of agricultural products in France. More specifically such activities include pilot projects, product development, certain cooperation activities between different entities, certain environmental projects, local promotional activities and creating poles and networks. 

The scheme's total budget has a total value of EUR 150 million (approx. USD 176.8 million). The financial support is granted in the form of favourable repayable loans and loans with reduced rates as well as financial grants and interest rate subsidies, see related intervention. 

According to the European Commission's decision text, the aim of the scheme is, among others, to "improve competitiveness and strengthen the efficiency of enterprises active in the agricultural sector through the support of their cooperation with other entities." (own translation)

In this context, the European Commission noted in its decision text that: "The sector concerned is open to competition at an EU level and is therefore sensitive to any measures taken in favour of production in one or more Member States. Therefore, the scheme is liable to distort competition and to influence trade between Member States" (own translation)

However, the European Commission approved the scheme on 22 May 2018 stating: "Accordingly, the Commission has decided not to raise any objections to the notified measure on the ground that it is compatible with the internal market under Article 107 (3) (c) TFEU" (own translation). The scheme is in force from 22 May 2018 until 31 December 2020.

AFFECTED SECTORS

 
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AFFECTED PRODUCTS

 
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Inception date: 22 May 2018 | Removal date: 31 Dec 2020

Financial grant

The French authorities introduced an aid scheme for the agricultural and agri-food sector on 22 May 2018 following the approval by the European Commission on the same day. The scheme has a total budget of EUR 150 million (approx. USD 176.8 million). The financial support is granted in the form of favourable repayable loans and loans with reduced rates as well as financial grants and interest rate subsidies, see related intervention. 

Under the scheme, companies and other eligible entities operating in or cooperating with the agricultural and agri-food sector can via an application receive financial support for certain activities.

Supported activities include pilot projects, product development, certain cooperation activities between different entities, certain environmental projects, local promotional activities and creating poles and networks. 

 
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