State aid: Commission approves €2.5 million Maltese direct grant scheme to support animal farmers in the context of the coronavirus outbreak

The European Commission has approved a €2.5 million Maltese scheme to support animal farmers affected by the coronavirus outbreak. The scheme was approved under the State aid Temporary Framework. Under the scheme, public support will be provided in the form of a direct grant. The purpose of the scheme is to help animal farmers addressing the liquidity shortages they are facing due to the coronavirus outbreak as a result, among others, of the halting of the catering and hospitality sectors. The Commission found that the Maltese scheme is in line with the conditions set out in the Temporary Framework. In particular, the aid will not exceed €100,000 per company active in the primary agriculture sector as provided by the Temporary Framework. 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 measure 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.58297 in the State aid register on the Commission’s competition website once any confidentiality issues have been resolved.