EU eases rules for providing small amounts of state aid to farmers

Farmers in the European Union will be able to receive more state aid without regulatory oversight, Reuters reports, citing new rules from the European Commission.

The EC said that the innovations approved today exempt small amounts of support in the agricultural sector from state control, as they are considered not to affect competition and trade.

The national limits for aid without such controls were increased from 1.5% to 2% of agricultural output, with a longer reporting period to reflect the increased cost of production in recent years.

The maximum amount a company can receive without having to notify officials has been doubled to €50,000 over three years.

The new rules will be in effect until the end of 2032.

In November, European farmers protested in Brussels against the EU-Mercosur free trade agreement with South American countries. Farmers say that the agreement with the bloc, which includes Brazil, Argentina, Bolivia, Paraguay and Uruguay, will create unfair competition for farmers and food producers in the Euro bloc, as it will allow imports of large volumes of products that are not subject to the same strict rules they face in the EU.

Tags: subsidies, EU