State aid: Commission approves €47.5 million Lithuanian scheme to support companies active in the production and processing of pig, vegetable and aquaculture products affected by the coronavirus outbreak
The European Commission has approved under State aid rules a €47.5 Lithuanian scheme to support companies active in the production and processing of pig, vegetable and aquaculture products affected by the coronavirus outbreak. The scheme was approved under the State aid Temporary Framework. Under the scheme, the public support will take the form of (i) direct grants, with a budget of €7.5 million; and (ii) subsidised interest rates for loans, with a budget of €40 million. The purpose of the scheme is to address the liquidity needs of farmers and to help them continue their activities during and after the outbreak. The Commission found that the Lithuanian scheme is in line with the conditions set out in the Temporary Framework. In particular, (i) the aid does not exceed €100,000 per company active in the primary production of agricultural products and €120,000 per company active in the aquaculture sector; and (ii) the aid will be granted before 31 December 2020. Furthermore, the loan principle is limited, based on the size of the company, in accordance with the Temporary Framework. 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 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.57823 in the State aid registeron the Commission’s competition website once any confidentiality issues have been resolved.
