Press Release: Commission authorises state aid for less favoured areas in Finland

The European Commission on 16 March 2005 authorised Finland to pay state aid worth a total of €120.3 million per year to compensate farmers for natural handicaps in less favoured areas. The new state aid was to be combined with existing support for less favoured areas co-financed by the European Union (EU) in the framework of the Finnish rural development program. The aid consists of a basic payment of €20/ha in support areas A, B and C1 and €25/ha in support areas C2-C4. This basic payment is granted for all areas eligible for a co-financed allowance. In addition, area situated in animal husbandry farms receives an additional payment of €80/ha.