The European Commission has approved an approximately €346 million (PLN 1.5 billion) Polish scheme to support agricultural producers in the context of Russia's war against Ukraine. The scheme was approved under the State Aid Temporary Crisis and Transition Framework, adopted by the Commission on March 9, 2023, to support measures in sectors which are key to accelerating the green transition and reducing fuel dependencies. The new Framework amends and prolongs in part the Temporary Crisis Framework, adopted on March 23, 2022, to enable Member States to support the economy in the context of the current geopolitical crisis, already amended on July 20 20, 2022, and on October 28, 2022.

Under the scheme, the aid will consist of limited amounts of aid in the form of subsidized interest rates on loans. The purpose of the measure is to support the liquidity needs of agricultural producers, which are affected by the current geopolitical crisis.

The Commission found that the Polish scheme is in line with the conditions set out in the Temporary Crisis Framework. In particular, the aid (i) will not exceed €250,000 per beneficiary; and (ii) will be granted no later than December 31, 2023. The Commission concluded that the scheme is necessary, appropriate, and proportionate to remedy a serious disturbance in the economy of a Member State, in line with Article 107(3)(b) TFEU and the conditions set out in the Temporary Crisis and Transition Framework. On this basis, the Commission approved the scheme under EU State aid rules.

Source - https://www.freshplaza.com