State aid: Commission approves €370 million Czech scheme to support enterprises in the primary agricultural sector and in food and feed production affected by coronavirus outbreak

The European Commission has approved a CZK 10 billion (approximately €370 million) Czech scheme to support enterprises active in the primary agricultural sector and in food and feed production affected by the coronavirus outbreak. The scheme was approved under the State aid Temporary Framework. The public support, which will take the form of direct grants, will be open to all enterprises active in the primary agricultural production sector (farmers) and to food and feed producers. The aid is specifically intended to ensure sufficient working capital for beneficiaries, which suffered a decrease in total earnings of at least 25%, compared to the same period in 2019. The measure is expected to support between 12,000 and 20,000 enterprises. The purpose of the scheme is to address the liquidity needs of farmers and to help them continue their activities during and after the outbreak. The Commission found that the Czech 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 active in the primary production of agricultural sector or €800,000 per company active in food and feed production 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.57848 in the State aid register on the Commission’s competition website once any confidentiality issues have been resolved.