New aid for small Romanian farmers approved by the European Commission

The European Commission has approved new aid for small Romanian farmers. This decision aims to amend a state aid scheme in Romania, intended to support tomato and garlic producers in the context of Russia’s war against Ukraine. The necessary funds will be allocated from Romania’s state budget.

In an announcement made on Friday, July 19, the European Commission approved the amendment of an existing aid scheme from Romania, which includes an increase in the total budget by 54.4 million euros (270.7 million lei). This amendment aims to support tomato and garlic producers affected by the war in Ukraine. The new adjustments were approved in accordance with the Temporary Crisis and Transition Framework (TCTF) for State aid, adopted by the Commission on March 9, 2023, and subsequently amended on November 20, 2023, and May 2, 2024.

Thus, small Romanian farmers will benefit from significant financial support, intended to mitigate the economic impact of the conflict in Ukraine and ensure the continuity of agricultural production in these essential sectors.

The European Commission has approved the budget increase for vegetable growers.

According to the statement sent to Agrointeligența, the European Commission initially approved the aid scheme on February 22, 2024. Under this scheme, subsidies are granted in the form of direct grants and are intended for tomato producers in protected spaces, such as greenhouses, and garlic producers. The recent amendments to the scheme include an overall budget increase of 54.4 million euros (270.7 million lei) and an increase in the amount of individual aid for beneficiaries of this measure.

Romania notified these changes to more effectively support producers affected by economic disruptions. The European Commission concluded that the modified scheme is necessary, appropriate, and proportionate to remedy serious disturbances in the economy of a Member State. This is in accordance with Article 107(3)(b) of the Treaty on the Functioning of the European Union (TFEU) and the conditions set out in the Temporary Crisis and Transition Framework (TCTF) for State aid.

On this basis, the Commission approved the amendment in accordance with EU State aid rules, thus ensuring significant support for Romanian vegetable growers affected by the economic crisis generated by the conflict in Ukraine.