State aid: Commission approves €7.4 million Romanian scheme to support companies active in the bovine breeding sector in the context of the coronavirus outbreak

The European Commission has approved a €7.4 million (approximately RON 35.7 million) Romanian scheme to support companies active in the bovine breeding sector that are 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 direct grants. The aim of the scheme is to help companies active in the bovine breeding sector address their liquidity needs and continue their activities in order to ultimately secure food and feed materials for the food industry and maintain jobs. The scheme is expected to benefit over 1,000 companies active in the bovine breeding sector. The Commission found that the Romanian scheme is in line with the conditions set out in the Temporary Framework. In particular, (i) the grants do not exceed €100,000 per beneficiary as provided by the Temporary Framework for undertakings active in the primary production of agricultural products; and (ii) the support can be granted 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 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.58453 in the State aid register on the Commission’s competition website once any confidentiality issues have been resolved.