ANNOUNCEMENT 07 Sep 2015

In September 2015, the European Commission announced a change in private-sector financial support.

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising
Inception date: 16 Oct 2015 | Removal date: open ended
Still in force

Financial grant

 On 7 September 2015, the European Commission announced a 500 million EUR package to support farmers, particularly those in the dairy and pig meat sectors.
According to a press release, the aim of the package is

  • "(1) addressing the cash-flow difficulties farmers are facing,
  • (2) stabilising markets and
  • (3) addressing the functioning of the supply chain."

Furthermore, the Commission mentioned that "today's announcement should be seen in the context of considerable support already provided to the agricultural sector in response to the impact of the Russian ban and the level of support that the EU provides annually to farmers and rural communities, amounting to more than EUR50 billion."
With regard to the first aim, the Commission shall advance the direct payments and certain Rural Development payments to farmers starting as early as 16 October 2015.
Most of the other steps mentioned in the annex to the press release focused on promtion of European meat and EU support schemes for Europea famers. The annex also announced further aid in the future, e.g. the Commission is working on a new pig meat storage aid (cf. Related Measures).
On 15 September 2015, Commissioner Phil Hogan presented in a speech at the Informal Council of Agriculture Ministers the concrete steps of the support package (cf. Sources). He stressed that the measure was exceptional in nature and that 420 million from the package will be distributed to members states based on their milk quota from the previous year; whereas the remaining 20% of the package will be handed out based on how each EU country was affected by the fall in the pig meat prices, the Russian import ban on dairy products and the summer drought.
The GTA includes state guarantees and other financial incentives that are likely to affect the restructuring and performance of firms facing international competition, whether from imports, in export markets, and from foreign subsidiaries.
 
The list of implementing jurisdictions is based only on those EU Member States which have explicitly received more than 10 million USD in state aid.

AFFECTED SECTORS