THE Commission approved Greek regime amounting to 31 million euros to support the producers of agricultural products in the context of the Russian war against Ukraine. The scheme was approved under the Temporary State Aid Framework, which was approved by the Commission on 9 March 2023 to support measures in key sectors to accelerate the green transition and the transition away from fossil fuels. The new framework partially amends and extends the temporary crisis framework adopted on 23 March 2022 to enable Member States to support the economy in the context of the current geopolitical crisis and which was amended on 20 July 2022 and 28 October 2022.

Under the scheme, aid will be given in the form of direct grants. The measure is aimed at producers of various agricultural products such as pears, saffron, tobacco and beekeeping products. Its purpose is to compensate eligible beneficiaries for part of the additional production costs incurred due to the increase in the price of energy and other inputs and to help them overcome the financial difficulties they are facing due to the current crisis.

The Commission found that the Greek regime is consistent with the conditions set by the temporary crisis and transition framework. In particular, the aid i) does not exceed 250,000 euros per beneficiary and ii) will be granted until 31 December 2023. The Commission concluded that the program is necessary, appropriate and proportionate to remove a serious disruption of the economy of a Member State, in accordance with Article 107 paragraph 3 letter b) of the 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.

More information on the temporary crisis and transition framework and other measures the Commission has taken to address the economic impact of Russia’s war on Ukraine and to promote the transition to a net-zero emissions economy is available here. The non-confidential version of the decision will be published under number SA.107303 in the State aid register on the Competition Commission’s website once any confidentiality issues have been resolved.

Lena Flitzani