The European Commission has given the
green light to a €90 million state aid scheme launched by the
Italian government to support primary agricultural production,
processing, and marketing of agricultural products. According to
the European Commission, the aid will be provided in the form of
"direct grants and subsidized services," benefiting an estimated
250-300 recipients, 99% of whom will be micro, small, and medium
enterprises (SMEs). The Commission deemed the aid "necessary and
appropriate" to encourage investment and support businesses in
the agricultural sector at the local level. It also considered
it "proportionate" to its purpose, given its time-limited
nature.
The aid will run until December 31, 2029, and, according to the
Italian government, aims to reorganize local agricultural supply
chains to create better market relationships and benefits for
the sector in terms of income, resilience, sustainability, and
innovation. Specifically, the program will enable businesses
within a defined "food district" to identify their needs and
receive support through a "district contract" signed with the
Italian Ministry of Agriculture, Food, Forestry, and Tourism
Policies.
This approval comes as Brussels prepares for the post-2027
Common Agricultural Policy (CAP). EU officials are working on a
second simplification package to be presented in the spring,
aiming to further reduce bureaucratic burdens for small farms.
Following last year's streamlining efforts—introduced in
response to farmer protests that shook the European capital—the
new measures are expected to include the suspension of annual
performance checks and lump-sum payments for businesses.
#IMCAP
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