WIREDGOV

The European Commission has approved a €169 million Spanish scheme to support the milk producers sector in the context of Russia's invasion of Ukraine. The scheme was approved under the State aid Temporary Crisis Framework, adopted by the Commission on 23 March 2022, based on Article 107(3)(b) of the Treaty on the Functioning of the European Union (‘TFEU'), recognising that the EU economy is experiencing a serious disturbance.

Executive Vice-President Margrethe Vestager, in charge of competition policy, yesterday said:

“This €169 million scheme will enable Spain to support milk producers affected by the input costs increase caused by Russia's invasion of Ukraine and the related sanctions. We continue to stand with Ukraine and its people. At the same time, we continue working closely with Member States to ensure that national support measures can be put in place in a timely, coordinated and effective way, while protecting the level playing field in the Single Market.”

The Spanish measure

Spain notified to the Commission a €169 million scheme to support the milk producers sector in the context of Russia's invasion of Ukraine.

Under this scheme, the aid will take the form of direct grants.

The measure will be open to the producers of cow's, sheep's and goat's milk active in Spain affected by the price increase of electricity, animal feed and fuel caused by the current geopolitical crisis and the related sanctions.

In order to cover part of the costs increase, the eligible beneficiaries will be entitled to receive an aid amount equal to:

1. for producers of cow's milk:(i) €210 per cow for the first 40 animals; (ii) €140 per cow for any additional animal up to 180; and (iii) €100 per cow beyond 180  animals;
2. for producers of sheep's milk: €15 per sheep;
3. for producers of goat's milk: €10 per goat.

The Commission's assessment

The Commission found that the Spanish scheme is in line with the conditions set out in the Temporary Crisis Framework. In particular, the aid (i) will not exceed €35,000 per beneficiary; and (ii) will be granted no later than 31 December 2022.

The Commission concluded that the Spanish scheme 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 Crisis Framework.

On this basis, the Commission approved the aid measure under EU State aid rules.

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