The European Commission has approved a state aid scheme with a budget of about EUR 304 million, whose objective is to support Romanian farmers in difficulty due to the economic crisis. The aid under this scheme may be granted until December 31, 2011 and will take the form of direct grants.

This scheme is part of a temporary framework for state aid measures to support access to finance in the current financial and economic crisis, adopted by the European Commission in December 2010, enabling member states to grant aid in a limited amount to primary farmers.

The scheme is open to all farmers in all sub-sectors of primary agricultural production, given that they were not already in difficulty at July 1, 2008. It provides direct aid in the form of grants, amounting to EUR 15,000 per farmer. The scheme launched by Romania meets all the conditions of the temporary crisis.

Irina Popescu, irina.popescu@romania-insider.com