State aid: Commission approves €9.3 million Croatian scheme to support enterprises active in primary agricultural sector affected by coronavirus outbreak

The European Commission has approved an approximately €9.3 million (HRK 70 million) Croatian scheme to support enterprises active in certain primary agricultural sectors 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 breeders of cattle and sow as well as producers of apples, mandarins and potatoes in Croatia. The measure is expected to support more than 6,500 enterprises.  The aim of the scheme is to address the liquidity needs of enterprises that suffered a decrease in sales and to help them to continue their activities during and after the outbreak. The Commission found that the Croatian scheme is in line with the conditions set out in the Temporary Framework. In particular, (i) the aid will not exceed €100,000 per beneficiary, as provided by the Temporary Framework for undertakings in the primary agricultural sector; and (ii) the aid under the scheme can be granted until 30 June 2021. 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 the 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.59815 in the State aid register on the Commission’s competition website once any confidentiality issues have been resolved.