Euractiv reports that a coalition of 15 EU countries is set to call for an increase in "de minimis" state aid for the agricultural sector, according to a note circulated among member states, which will be discussed at a ministerial meeting.

Farmers' representatives advocate for raising the "de minimis" ceiling to €50,000 per farm three years ahead of next week's Agriculture and Fisheries Council (AGRIFISH), diplomatic sources told Euractiv.

The de minimis regulation allows member states to allocate small amounts of public subsidies to a company without officially notifying or obtaining prior approval from the Commission, as these amounts are considered not to distort the market.

The initiative was spearheaded by Germany, with support from the French, Austrian, Croatian, Romanian, Hungarian, Cypriot, Slovenian, Latvian, Luxembourgish, Maltese, Slovakian, Estonian, Polish, and Bulgarian delegations.

"We will have a debate," confirmed a EU diplomat to Euractiv, "I expect different voices around the table," because "not all member states have the same means to support their farms."

Currently, the maximum value of small-scale subsidies that can be granted to an individual company in the agriculture and fisheries sector is capped at €20,000, respectively €30,000, over a three-year period.

EU leaders have called for an extension of the current temporary state aid framework, which has allowed EU countries to distribute billions in the agricultural sector in recent years, and an increase in de minimis aid for agriculture, at a summit on April 17-18.

On April 11, the Commission stated that it was consulting EU countries on extending the Temporary Crisis and Transition Framework (TCTF) to allow governments to continue easing financial pressure on farmers "given the persistent market disruptions."

EU countries offer billions in aid to the agri-food sector amid farmer protests

European Union member states have spent billions of euros to support agricultural and food industries over the past two years, following a temporary relaxation of the bloc's state aid rules to help businesses cope with the impact of the Russia-Ukraine war.

Under the TCTF, member states can provide up to €280,000 and €335,000 to individual companies operating in the agriculture and fisheries sectors until June 30, 2024.

At the Council meeting on February 26, Italy presented a note calling on the Commission to adopt a temporary framework to address the crisis in the agricultural sector, ensure a European moratorium on farmers' debts in various member states, and increase de minimis aid in the agricultural sector to €50,000.

A recent report by former Italian Prime Minister Enrico Letta on the EU's single market warned that relaxing state aid rules in response to the recent crisis had led to distortions of competition between EU countries due to their differing spending capacities. (Photo: Dreamstime)