EC approves Austria’s aid scheme worth €110mn

Belgium, (Brussels Morning Newspaper) The European Commission approved Austria’s aid scheme worth 110 million euro aimed at supporting agricultural producers.

The EC pointed out in a statement on Friday that it approved the aid under the Temporary Crisis Framework, stressing that the EU economy is facing severe disturbances.

Margrethe Vestager, European Commissioner for Competition, noted “the agricultural sector has been hit particularly hard by the price increase of energy and other input costs caused by Russia’s invasion of Ukraine and the related sanctions.”

She pointed out that the money will help Austria to support its farmers and stressed that it is making sure that aid measures do not affect competition on the EU market.

Austria’s scheme will provide support to companies in the sector of agriculture that have been hit by rising prices of energy and raw materials, the EC noted.

“Under this scheme, the eligible beneficiaries will be entitled to receive limited amounts of aid in the form of direct grants,” the Commission pointed out and added “aid amount per beneficiary will be calculated on the basis of the number of hectares of agricultural land.”

Plan in line with EU rules

The body noted that Austria’s plan is in line with Temporary Crisis Framework rules as aid will not exceed 62,000 euro per beneficiary and will be provided by the end of the year.

It added that the proposed aid plan is appropriate, proportionate and necessary to address economic disturbances.

The body pointed out that, according to EU rules, member states can provide aid to companies to partially compensate them for exceptional growth of natural gas and electricity prices.

It added that bloc members may provide aid of up to 25 million euro to large energy consumers and up to 50 million to companies in severely affected sectors.

Under the framework, EU member states can support investments in the green push and diversification of energy supply, the Commission reminded.

The EC pointed out that Russian-controlled entities are not eligible for aid.

It noted that the Temporary Crisis Framework will remain in place until the end of the year and concluded that it will assess a possible extension at a later stage.