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IP/10/453

Brussels, 21 April 2010

State aid: Commission authorises temporary Austrian scheme to grant limited amounts of aid of up to €15,000 to farmers

The European Commission authorised an Austrian scheme with a budget of approximately €1.2 million which aims at supporting farmers in Austria who encounter difficulties as a result of the current economic crisis. Aid under this scheme can be granted until 31 December 2010 and will take the form of direct grants, interest rate subsidies, subsidised loans and subsidised guarantees. This scheme is a further application of the Commission's Temporary framework for State aid measures to support access to finance in the current financial and economic crisis, as amended end of October 2009 in order to allow Member States to grant limited amounts of aid to primary agricultural producers (see IP/09/1993 ).

The scheme is open to farmers in all sub-sectors of primary agricultural production, provided they were not already in difficulty on 1 July 2008 (i.e. before the beginning of the crisis). It is limited in time until 31 December 2010 and complements other crisis measures already put in place by the Austrian authorities in application of the Temporary Crisis Framework (among which measure N 47a/2009 as amended by N 317/09- see IP/09/454). The scheme provides aid in the form of direct grants, interest rate subsidies, subsidised loans and subsidised guarantees. It will be granted by the Bund and the Länder.

The new Austrian scheme meets all the conditions of the Temporary Crisis Framework as amended. In particular, the Austrian authorities demonstrated that it is necessary, proportional and appropriate to remedy a serious disturbance in the economy. The Commission therefore considered that the scheme can be approved under Article 107(3)(b) of the Treaty on the Functioning of the European Union

The full text of the Commission decision will be published in the State Aid Register on DG Competition’s website under the reference number N 118/10.


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