Regulation (EU) 2019/316 amending Regulation (EU) No 1408/2013 on the application of Articles 107 and 108 of the Treaty on the Functioning of the European Union to de minimis aid in the agriculture sector

Summary:

Regulation (EU) 2019/316 - adopted by the European Commission in February 2019 - which revises Regulation (EU) No 1408/2013 on the application of Articles 107 and 108 of the Treaty on the Functioning of the European Union (TFEU) to de minimis aid in the agriculture sector.

Further information:

The de minimis aid is typically used by Member States when they need to act quickly without setting up a scheme in accordance with state aid rules, notably in times of crisis. It is also commonly used for very specific purpose.

The Regulation - adopted by the European Commission on 21 February 2019 - increases the maximum amount that national authorities can use to support farmers without the need for prior approval from the European Commission, in the context of the European Union's rules on State aid. The maximum aid amount that can be distributed per farm over three years will rise from €15,000 to €20,000.  The decision to increase the ceiling for national support to farmers aims at greater flexibility and efficiency, notably in times of crisis and situations demanding a swift response by the public authorities.

In order to avoid any potential distortion of competition, each EU country has a maximum national amount which they cannot exceed. Each national ceiling was set at 1.25% of the country's annual agricultural output over the same three-year period. This is an increase in the national ceiling of 25% compared with the previous rules.  The increased ceilings would come into force on 14 March.

The Commission launched a consultation on the revision of Regulation (EU) No 1408/2013 previous to the adoption of these amendments.

• Primary Source

News

Politico, 18/05/2018: EU pushes to raise state aid ceiling for its struggling farmers https://www.politico.eu/article/eu-pushes-to-raise-state-aid-ceiling-for-its-struggling-farmers-competition-regulators/

Agriland, 22/02/2019: EU Commission boosts state aid ceiling to €25,000 per farm https://www.agriland.ie/farming-news/eu-commission-boosts-state-aid-ceiling-to-e25000-per-farm/

Independent.ie, 22/02/2019: EU state aid changes inadequate given what's ahead in the event of a crash out Brexit - IFA https://www.independent.ie/business/farming/news/farming-news/eu-state-aid-changes-inadequate-given-whats-ahead-in-the-event-of-a-crash-out-brexit-ifa-37842833.html

The Irish Times, 22/02/2019: Commission eases state aid rules for farmers in crisis https://www.irishtimes.com/business/agribusiness-and-food/commission-eases-state-aid-rules-for-farmers-in-crisis-1.3802782

---

Official

European Commission: Press Release, 22/02/2019: New state aid rules: Commission increases national support to farmers up to €25,000 http://europa.eu/rapid/press-release_IP-19-1332_en.htm

---