The European Commission has approved a PLN 40 million (approximately €9m) Polish scheme to support companies active in the primary agricultural sector affected by the coronavirus outbreak. The scheme was approved under the state aid Temporary Framework adopted by the Commission on 19 March 2020, as amended on 3 April 2020 and 8 May 2020.
The support, which will take the form of interest rate subsidies, will be open to all companies active in the primary agricultural production sector. The aid will be granted to cover up to 2% of the interest rate on loans for small and medium-sized enterprises (SMEs) and up to 1% of the interest rate on loans for large enterprises. The measure is expected to support more than 1,000 enterprises.
The aim of the scheme is to address the farmers’ liquidity needs and to help them continue their activities during and after the outbreak. The Commission found that the Polish scheme is in line with the conditions set out in the Temporary Framework. In particular, (i) the aid will not exceed €100,000 per company, and (ii) the scheme will run until 31 December 2020. 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 the Temporary Framework and other 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.57568 in the state aid register on the Commission’s competition website once any confidentiality issues have been resolved.