ANNOUNCEMENT 31 Jan 2009In January 2009, the European Commission announced a change in private-sector financial support.
NUMBER OF INTERVENTIONS
EC regulation 74/2009
EC regulation 1698/2005
On 31 January 2009, the European Commission announced regulation 74/2009amending its earlier regulation 1698/2005 on support for rural development by the European Agricultural Fund for Rural Development. The amendment included the stipulation that, as of 1 January 2010, "the aid intensity rates fixed in Annex I 'of the initial regulation 1698/2005' may be increased by 10 percentage points" (art. 16a(2) of 74/2009). This aid may be granted to rural development programmes which include "measures accompanying the restructuring of the dairy sector" (art. 16a(1)e).
The regulation came into force on 1 February 2009. However, since the trade-distortionary aspect was valid only as of 1 January 2010, the latter date was classified as the inception date.
The GTA includes state guarantees and other financial incentives thatare likely to affect the restructuring and performance of firms facinginternational competition, whether from imports, in export markets, andfrom foreign subsidiaries.