Belgium, (Brussels Morning Newspaper) The European Commission approved Slovakia’s aid scheme worth 10 million euro to support food production.
In a statement released on Wednesday, the EC pointed out that it approved the aid scheme under the Temporary Crisis Framework adopted in March this year and amended in July.
Margrethe Vestager, European Commissioner for Competition, stated that the conflict in Ukraine affects the economy. She added that the newly approved scheme will help Slovakia to support affected companies by providing them with solvency.
“We continue to stand with Ukraine and its people,” she stressed and added “at the same time, we continue working closely with member states to ensure that national support measures can be put in place in a timely, coordinated and effective way, while protecting the level playing field in the single market.”
The Slovakian scheme will be available to companies in the sectors of food production and agricultural products processing, with beneficiaries to receive aid in the form of grants.
Aid in line with rules
The EC pointed out that the scheme is in line with EU rules as aid will not exceed 500,000 euro per beneficiary and will be provided by the end of the year.
The body added that the scheme is appropriate, proportionate and necessary to address severe economic disturbance in Slovakia, which is why it approved the proposal.
The Commission reminded that the Temporary Crisis Framework allows member states to support their economies in the context of the war in Ukraine, adding that the framework was amended in July this year to bring it in line with plans to stop importing Russian fossil fuels by 2030.
Under the framework, member states can provide aid in any form to businesses affected by EU sanctions and Russia’s countersanctions as well as provide solvency support.
Bloc members can also provide aid to compensate companies for soaring energy prices, with the EC stressing “when the company incurs operating losses, further aid may be necessary to ensure the continuation of an economic activity.”
Under the framework, EU member states can also support renewable energy projects “with simplified tender procedures that can be quickly implemented, while including sufficient safeguards to protect the level playing field,” the Commission concluded.
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