Faced with persistent economic disruptions exacerbated by the war in Ukraine, the European Commission has decided to extend certain measures of the Temporary State Aid Crisis and Transition Framework (ETCT). This amendment, adopted on April 11, 2024, mainly aims to support the primary agricultural production, fishing and aquaculture sectors. The context of this decision includes the conclusions of the European Council of 17 and 18 April, highlighting the importance of a robust agricultural sector for food security and the strategic autonomy of the European Union.
Extension details
The limited extension of section 2.1 of the ETCT, until December 31, 2024, allows Member States to offer direct aid to businesses in these specific sectors without increasing pre-existing aid ceilings. Thus, the amounts remain set at 280,000 euros for the agricultural sector and 335,000 euros for fishing and aquaculture. This extension aims to provide additional relief to economic actors still affected by market disruptions and international sanctions.
Impact on other provisions
The modification does not influence other sections of the ETCT. For example, section 2.4, which concerns compensatory aid for high energy costs, will also be phased out by June 30, 2024. Other measures already removed at the end of 2023 include those relating to support for liquidity and reduction of electricity demand. On the other hand, provisions promoting the ecological transition, such as investments in renewable energies or the decarbonization of industrial processes, will remain active until December 31, 2025.
Revision of the de minimis regulation in the agricultural sector
At the same time, the Commission is considering a review of the de minimis regulation for the agricultural sector. This revision, motivated by inflationary pressure and the increase in raw material prices, aims to adapt the exemption thresholds for small amounts of aid. Currently, Member States can grant up to 20,000 euros over three years without the need for prior notification, with a potential cap of 25,000 euros if a central register is used.
Renewed support in a delicate context
This extension of state aid illustrates the responsiveness of the European Commission in the face of protracted crises impacting crucial sectors. By maintaining targeted support without intensifying financial interventions, the European Union seeks to stabilize these vital sectors while respecting the constraints of competition and the single market.
