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State aid: EU Commission approves €30.5 million Lithuanian scheme to support bovine animal and milk producers affected by the coronavirus outbreak

The European Commission has approved a €30.5 million Lithuanian scheme to support bovine animal and milk producers affected by the coronavirus outbreak. The scheme was approved under the State aid Temporary Framework adopted by the Commission on 19 March 2020, as amended on 3 April 2020 and 8 May 2020.

The support will take the form of direct grants and will be accessible to farmers and companies active in the primary production of bovine animal products and milk. €12 million will be available for bovine animal producers and €18.5 million for milk producers.

The purpose of the scheme is to support the Lithuanian agricultural sector in response to the coronavirus outbreak and to address liquidity and solvency problems caused by the outbreak, thus contributing to the preservation of the viability, production infrastructure and social stability in rural areas.

The scheme is expected to benefit approximately 28,000 producers of bovine animal products and 28,000 producers of milk. The Commission found that the Lithuanian scheme is in line with the conditions set out in the Temporary Framework. In particular, the aid does not exceed €100,000 per beneficiary.

The Commission concluded that the measure is necessary, appropriate and proportionate to remedy a serious disturbance in the economy of a Member State, in line with Article 107(3)(b) TFEU and the conditions set out in the Temporary Framework. On this basis, the Commission approved the measures under EU State aid rules.

More information on the Temporary Framework and other actions taken by the Commission to address the economic impact of the coronavirus pandemic can be found here.

https://ec.europa.eu/competition/state_aid/what_is_new/covid_19.html

Arianna Podesta – Giulia Astuti –