Commission approves EUR 500 million State aid scheme for farmers affected by floods and landslides in Italy
The scheme is open to companies of all sizes, active in primary agricultural production, processing and in marketing of agricultural products. Under the scheme, the aid will take the form of direct grants covering up to 100% of the investment costs for restoring the production potential up to the level existing before the natural disasters, and up to 100% of the damages suffered by companies as a direct consequence of the natural disasters. This includes material damage, loss of income and costs resulting from the natural disaster. The scheme will run until 17 September 2028.
The Commission assessed the scheme under Article 107(2)(b) TFEU, which allows Member States to grant aid to make good the damage caused by natural disasters or exceptional occurrences. The scheme only compensates for the damages effectively caused by floods and landslides, that qualify as natural disasters.
The Commission also assessed the investment part of the scheme under Article 107(3)(c) of the TFEU, which allows Member States to support the development of certain economic activities under certain conditions, and the Guidelines for State aid in the agricultural and forestry sectors and in rural areas. It found that the scheme is necessary, appropriate, proportionate and will have a limited impact on competition and trade between Member States.
The decision will be made available under the case number SA.122427 in the State aid register.
For more information, see the Commission’s PR.