ANNOUNCEMENT 15 Jul 2020

In July 2020, the European Commission approved a EUR 1.2 billion (approx. USD 1.4 billion) Italian state aid that establishes a series of financial measures to support the agricultural, forestry, fishery and aquaculture sectors in the context of the COVID-19 pandemic.

NUMBER OF INTERVENTIONS

3

  • 3 harmful
  • 0 neutral
  • 0 liberalising

SOURCE

SA.57947 Support measures for undertakings carrying out activities in the agricultural, forestry, fishery and aquaculture sectors and the activities related thereto, in relation with the Covid-19 outbreak crisis. Available at: https://ec.europa.eu/competition/elojade/isef/case_details.cfm?proc_code=3_SA_57947

European Commission Decision. Subject: State Aid SA.57947(2020/N) – Italy COVID-19: Support measures for undertakings carrying out activities in the agricultural, forestry, fishery and aquaculture sectors and the activities related thereto, in relation with the COVID-19 outbreak crisis. Available at: https://ec.europa.eu/competition/state_aid/cases1/202029/287036_2173961_28_2.pdf

Inception date: 15 Jul 2020 | Removal date: 31 Dec 2020

Financial grant

On 15 July 2020, the EU approved a EUR 1.2 billion (approx. USD 1.4 billion) Italian state aid measure that provides different financial support measures to the agricultural, forestry, fishery, and aquaculture sectors and the activities related thereto, in the context of the COVID-19 pandemic.

The first type of support will be granted in the form of direct grants. The total amount of individual aid cannot exceed EUR 100 000 for the agriculture sector; EUR 120 000 for the fishery and aquaculture sector; and EUR 800 000 for the forestry sector.

The beneficiaries are businesses operating in the primary production sectors of agricultural products, forestry, fishery, and aquaculture, along with their processing and marketing related activities. There is no restriction in terms of size and the measure applies to the entire Italian territory.

The European Commission highlighted that “the measure is liable to distort competition, since it strengthens the competitive position of its beneficiaries”, as well as it “also affects trade between Member States, since those beneficiaries are active in sectors in which intra-Union trade exists”.

Regardless, the Commission approved the state aid without raising objections, concluding the measure “is compatible with the internal market pursuant to Article 107(3)(b) of the TFEU”.

The state aid is approved under the Temporary Framework under the State Aid and its amendment of 2 April 2020. The European Commission adopted the Temporary Framework under the State Aid rules of the European Union on 19 March, see related state act. 

AFFECTED PRODUCTS

 
N/A
Inception date: 15 Jul 2020 | Removal date: 31 Dec 2020

State loan

On 15 July 2020, the EU approved a EUR 1.2 billion (approx. USD 1.4 billion) Italian state aid measure that provides different financial support measures to the agricultural, forestry, fishery, and aquaculture sectors and the activities related thereto, in the context of the COVID-19 pandemic.

The second type of support will be granted through repayable advances. The total amount of individual aid cannot exceed EUR 100 000 for the agriculture sector; EUR 120 000 for the fishery and aquaculture sector; and EUR 800 000 for the forestry sector.

The beneficiaries are businesses operating in the primary production sectors of agricultural products, forestry, fishery and aquaculture, along with their processing and marketing related activities. There is no restriction in terms of size and the measure applies to the entire Italian territory.

The European Commission highlighted that “the measure is liable to distort competition, since it strengthens the competitive position of its beneficiaries”, as well as it “also affects trade between Member States, since those beneficiaries are active in sectors in which intra-Union trade exists”.

Regardless, the Commission approved the state aid without raising objections, concluding the measure “is compatible with the internal market pursuant to Article 107(3)(b) of the TFEU”.

The state aid is approved under the Temporary Framework under the State Aid and its amendment of 2 April 2020. The European Commission adopted the Temporary Framework under the State Aid rules of the European Union on 19 March, see related state act. 

 
N/A
Inception date: 15 Jul 2020 | Removal date: 31 Dec 2020

Tax or social insurance relief

On 15 July 2020, the EU approved a EUR 1.2 billion (approx. USD 1.4 billion) Italian state aid measure that provides different financial support measures to the agricultural, forestry, fishery, and aquaculture sectors and the activities related thereto, in the context of the COVID-19 pandemic.

The third and last type of support will be granted through tax and payment advantages, the reduction or cancellation of social security payments, as well as other welfare contributions.  The total amount of individual aid cannot exceed EUR 100 000 for the agriculture sector; EUR 120 000 for the fishery and aquaculture sector; and EUR 800 000 for the forestry sector.

The beneficiaries are businesses operating in the primary production sectors of agricultural products, forestry, fishery, and aquaculture, along with their processing and marketing related activities. There is no restriction in terms of size and the measure applies to the entire Italian territory.

The European Commission highlighted that “the measure is liable to distort competition, since it strengthens the competitive position of its beneficiaries”, as well as it “also affects trade between Member States, since those beneficiaries are active in sectors in which intra-Union trade exists”.

Regardless, the Commission approved the state aid without raising objections, concluding the measure “is compatible with the internal market pursuant to Article 107(3)(b) of the TFEU”.

The state aid is approved under the Temporary Framework under the State Aid and its amendment of 2 April 2020. The European Commission adopted the Temporary Framework under the State Aid rules of the European Union on 19 March, see related state act. 

 
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