ANNOUNCEMENT 29 Sep 2014

In September 2014, the European Commission announced a change in production support.

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising
Inception date: 29 Sep 2014 | Removal date: 28 Jun 2017
Still in force

Production subsidy

On 29 September 2014, the European Commission announced a new compensation scheme for perishable fruits and vegetables in the wake of the Russian import ban. The package replaces an older scheme (cf. Related Measures), where the financial ceilings had been reached earlier that month.
 
The new package worth EUR 165 million contains, in contrast to the previous one, eligible financing amounts for each country in the specific sector (cf. detailed list in the appendix of the official regulation). Also, the scheme was extended to cover oranges, mandarins and clementines.
 
Member States can use the budget either for fully EU-funded withdrawals for free distribution or for partially EU-funded withdrawals for non-food use such as composting. However, only the 13 Member States that had the highest fruits and vegetables exports to Russia may obtain funds.
 
This measure nonetheless impacts all Member States, as mentioned in paragraph 7 of the official regulation. 'Therefore, and in order to further stabilise the market, Union financial assistance should also be available for producers in all Member States in respect of one or more of the products covered by this Regulation, but the quantity involved should not exceed 3 000 tonnes per Member State.' (para. 8, EC regulation 1031/2014)
 
This aid package was available until the end of 2014. Afterwards, it was renewed by regulation 1371/2014 for another six months (cf. Related Measures).
 
Update 1:
On 8 August 2015, the EC announced in regulation 1369/2015 it would prolong the scheme for another year until June 2016.
 
Update 2: 
On 10 June 2016, the EC announced in a press release as well as in regulation 2016/921 the prolongation of the scheme until June 2017.
 
Update 3:
On 18 July 2016, the EC announced in a press release that it would update this compensation scheme to allow for withdrawals by producer organizations (cf. Related Measures).
 
 
A state measure in the GTA database is assessed solely in terms of the extent to which its implementation affects the extent of discrimination against foreign commercial interests. The subsidy recipient produces internationally tradable goods. On this metric, the state aid proposed here is discriminatory.