ANNOUNCEMENT 19 Nov 2020

On 19 November 2020, the European Commission approved a financial grant schemee to support wine producers facing economic difficulty as a result of the Covid-19 pandemic.

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising

SOURCE

SA.59520. Supporting the activity of producers in the wine sector in the context of the economic crisis generated by the Covid-19 pandemic :
http://ec.europa.eu/competition/elojade/isef/case_details.cfm?proc_code=3_SA_59520

Original publication:
http://eur-lex.europa.eu/JOHtml.do?uri=OJ:C:2021:275:SOM:EN:HTML

European Commission decision. SA.59520
https://ec.europa.eu/competition/state_aid/cases1/202127/289560_2212930_30_2.pdf

Inception date: 19 Nov 2020 | Removal date: 31 Dec 2020

Financial grant

On 19 November 2020, the European Commission approved a RON 59.5 (USD 14) million financial grant scheme from Romania. The aid will support companies of any size operating in the wine sector in Romania. The scheme is in force until 31.12.2020.

Under the scheme, the Ministry of Agriculture and Rural Development will be in charge of administering the aid which can not exceed EUR 100 000 per wine producer.

In this context, the European Commission noted the: 'The measure is liable to distort competition, since it strengthens the competitive position of its beneficiaries. It also affects trade between Member States, since those beneficiaries are active in sectors in which intra-Union trade exists.'.

Regardless, the Commission has decided not to raise objections to the aid on the grounds that '[...]it is compatible with the internal market pursuant to Article 107(3)(b) of the Treaty on the Functioning of the European Union.'.

The state aid is notified under the following objective: Remedy for a serious disturbance in the economy.

A state act in the GTA database is assessed solely in terms of the extent to which its implementation affects foreign commercial interests. On this metric, the financial support granted here is discriminatory.

AFFECTED SECTORS

 
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AFFECTED PRODUCTS

 
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