State aid: Commission approves €900,000 Cypriot scheme to support wine producers affected by the coronavirus outbreak

The European Commission has approved a €900,000 Cypriot scheme to support wine producers in the context of the coronavirus outbreak. Under the scheme, the aid will take the form of direct grants. The aim of the scheme is to help beneficiaries managing their wine and must stocks, which increased by around 50% due to the restrictions in place to limit the spread of the virus. The public support will cover part of the costs linked to the management of stocks and compensate wine producers for part of the loss of the value of wine due to a loss of quality. The aid amount per beneficiary will be €17 per hectolitre. The Commission found that the Cypriot scheme is in line with the conditions of the Temporary Framework. In particular, the aid (i) will not exceed €1.8 million per beneficiary; and (ii) will be granted no later than 31 December 2021. The Commission concluded that the scheme 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 scheme 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.64602 in the State aid register on the Commission’s competition website once any confidentiality issues have been resolved.