The European Commission has approved a €1 million Luxembourgish scheme to support small and medium-sized enterprises (SMEs) active in the pig production sector in the context of the COVID-19 outbreak.
The scheme was approved under the State aid Temporary Framework. Under the scheme, the public support will take the form of direct grants of up to €40,000 per farm. The measure aims at helping the beneficiaries to partially address the loss of income they suffered due to the coronavirus outbreak. More specifically, the scheme aims at enabling them to pay the financial charges of their farms for the last trimester of 2020 and the first trimester of 2021.
The Commission found that the Luxembourgish scheme is in line with the conditions of the Temporary Framework. In particular, the aid does not exceed €225,000 per beneficiary, as provided by the Temporary Framework for companies active in the primary agricultural sector, and the aid under the scheme can be granted until 31 December 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 scheme under EU State aid rules.
