State aid: Commission approves €1.1 million UK compensation to company active in Scotland in processing of agricultural products in poultry sector for damages caused by coronavirus outbreak

The European Commission has approved, under EU State aid rules, a €1.1 million (approximately GBP 1 million) UK grant to a company active in Scotland in the processing of agricultural products in the poultry sector. The measure aims at compensating the company for the loss of revenue caused by the coronavirus outbreak. The Commission assessed the measure under Article 107(2)(b) of the Treaty on the Functioning of the EU (TFEU), which enables the Commission to approve State aid measures granted by Member States and the UK to compensate specific companies or specific sectors for the damages directly caused by exceptional occurrences, such as the coronavirus outbreak. The assessment was carried out in conjunction with the EU Guidelines for State aid in the agricultural and forestry sectors and in rural areas 2014 to 2020. The Commission found that the UK grant will compensate damage which is directly linked to the coronavirus outbreak. It also found that the aid is proportionate, as the envisaged compensation does not exceed what is necessary to make good the damage. On this basis, the Commission concluded that the aid is in line with EU State aid rules. More information on actions taken by the Commission to address the economic impact of the coronavirus pandemic can be found here. The non-confidential version of the decision will be made available under the case number SA.60013 in the State aid register on the Commission’s competition website once any confidentiality issues have been resolved.