Commission approves €450 million Italian State aid scheme to foster investments in the agricultural sector

The European Commission has approved, under EU State aid rules, a €450 million Italian scheme to support the agricultural sector by fostering investments related to primary agricultural production, as well as to the processing and marketing of agricultural products.

The scheme will be open to companies active in primary agricultural production and processing and marketing of agricultural products in Italy. Under the measure, which will run until 31 December 2025, the aid will take the form of subsidised loans and cover up to 80% of the eligible costs.

The aim of the scheme is to enhance the competitiveness and resilience of the agricultural sector, by fostering projects related, among other things, to (i) the construction, acquisition or improvement of immovable property; (ii) the purchase of machinery and equipment; and (iii) the purchase, development or use of IT solutions.

The Commission assessed the scheme under EU State aid rules, in particular Article 107(3)(c) TFEU, which allows Member States to support the development of certain economic activities under certain conditions, and the 2022 Guidelines for State aid in the agricultural and forestry sectors and in rural areas. The Commission found that the scheme is necessary and appropriate to encourage the relevant investments in the agricultural sector. Furthermore, the Commission found that the scheme is proportionate as it is limited to the minimum necessary, and will have a limited impact on competition and trade between Member States. On this basis, the Commission approved the Italian scheme under EU State aid rules.

The non-confidential version of the decision will be made available under the case number SA.107521 in the State aid register on the Commission’s competition website once any confidentiality issues have been resolved.