State aid rules for agri and forestry sectors need 'targeted adjustments'
An evaluation of the rules concluded that 'overall' they work well and do meet the needs of the sectors concerned. File Picture.
The results of an evaluation of the State aid rules for the agriculture and forestry sectors, and for rural areas has been published by the EU Commission.
The evaluation concludes that, overall, the existing rules work well, are fit for purpose and meet the needs of the sectors concerned.
However, some targeted adjustments may be necessary to align the current rules with the current EU priorities, in particular the future Common Agricultural Policy (CAP) and the European Green Deal.
The evaluation’s aim was to assess how the current regulation and guidelines, which have applied since July 2014, have performed with regard to their main objectives:
- To minimise distortions of competition and trade in the agricultural and forestry sector;
- To ensure the consistency of the agricultural State aid rules with the CAP and in particular rural development objectives under the CAP;
- To simplify procedures and reduce administrative costs.
Meanwhile, the evaluation found that the rules “largely meet” the needs of the sectors concerned and contributed to the achievement of broader EU policy objectives including environmental protection as well as animal and public health.
It also revealed that existing rules need certain targeted revisions, including clarifications of some concepts, further streamlining and simplification, as well as adjustments to reflect the EU current priorities.
A number of rules appear to be outdated including those governing aid in sectors which are subject to production limits.
Furthermore, certain definitions and terms in the existing rules give rise to recurring interpretation requests and should, therefore, be further clarified.
Some requirements under the existing rules, in particular those relating to aid for subsidised services, such as information actions, appear to be too complex.
The rules will also need to be aligned to the Commission's current priorities, in particular the European Green Deal, the Farm to Fork Strategy and Biodiversity Strategy, as well as the CAP and national CAP Strategic Plans, including their enhanced environmental ambition.
The Commission is also reflecting on possible targeted changes to the rules to improve incentives for farmers and foresters to engage in activities that favour biodiversity and climate mitigation.
Read More
