EU Extends Support for Farms and Fisheries Amid Market Disruptions

The European Commission has announced a six-month extension of the extraordinary framework enabling member states to provide support to farms and fishermen. This extension, set to expire in June, has been prolonged until December 2024, citing the “persisting” disruptions in the market.

Under the amended Temporary Crisis and Transition Framework (TCTF), European Union countries are empowered to offer financial aid to companies within the agricultural and fisheries sectors. This aid can amount to up to €280,000 for agricultural enterprises and €335,000 for those in the fisheries sector. Importantly, the extension does not alter the existing financial ceilings.

Originally established in March 2023, the TCTF was conceived as an adjustment to the original Temporary Crisis Framework (TCF) introduced in March 2022. The TCF was primarily designed to assist businesses in managing the repercussions of Russia’s conflict in Ukraine.

The decision to extend the support framework exclusively applies to the agriculture and fisheries sectors. Member states will be able to provide aid to companies operating within these industries for an additional six months.

This move follows a call from EU leaders during a summit held on April 17-18 for an extension of the framework. The European Commission had indicated earlier, on April 11, that discussions were underway with member states regarding the continuation of financial relief to farmers, citing ongoing market disturbances.

However, concerns have been raised regarding the potential consequences of prolonged state aid relaxation. A recent report on the EU’s single market, authored by former Italian Prime Minister Enrico Letta, highlighted that the loosening of state aid rules has resulted in competition imbalances across the bloc due to variations in spending capacity among member states.

Source: Euractiv