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FUTRUE of the STATE AID IN AGRICULTURE

FUTRUE of the STATE AID IN AGRICULTURE. Christine Meisinger EUROPEAN COMMISSION January 2006. Future of state aid rules – in 2006. In 2006, adaptation of Community Guidelines for State Aid in the Agricultural Sector (OJ 28/2000) State aid exemption Regulation 1/2004 (agricultural SME)

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FUTRUE of the STATE AID IN AGRICULTURE

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  1. FUTRUE of the STATE AID IN AGRICULTURE Christine Meisinger EUROPEAN COMMISSION January 2006

  2. Future of state aid rules – in 2006 In 2006, adaptation of • Community Guidelines for State Aid in the Agricultural Sector (OJ 28/2000) • State aid exemption Regulation 1/2004 (agricultural SME) • De minimis Regulation 1860/2004 in the agricultural and fishery sector • Community Guidelines for State aid for advertising of agricultural products (OJ C 252/2001) • Community Guidelines for State aid concerning TSE tests, fallen stock and slaughterhouse waste (OJ C 324/2002)

  3. Future of state aid rules - reasons • Adaptation of these instruments to the Regulation EC 1698/2005 on support for RD by the EAFRD • Lisbon agenda: “less + better targeted state aid” • Simplification of the legal texts • End 2005: first drafts in consultation • 2006: discussion and conclusion • entering into force: 1.1.2007

  4. Lisbon agenda • Objective setting according to Lisbon agenda: • General reduction of state aid • More horizontal aid and less sectoral aid • Aid should contribution to growth and employment

  5. Horizontal objectives • State aid to the agricultural sector - contribution to horizontal objectives such as • research and development • environmental protection • services (of common economic interest) • regional development • Vocational training, education • Rescue and restructuring actions

  6. Sectoral objectives • Sectoral aid to agriculture: • Economic impact to the sub-sectors • Guidelines derived from the new RD Regulation (1698/2005) • human resources • physical investments and promotion of innovations • environment and landscape • Diversification • Management of risk- and crises

  7. Simplification • Considering the abolitions of certain requirements and criteria e.g. • market outlet test for investment aid, • occupational skills of farmers • meeting environmental and animal welfare standards • tender procedures for service provider • Replacement of „viable“ enterprises by the exclusion of aid to companies in difficulties

  8. less and better targeted aid • What aid intensity is necessary to get the best effects? • Sound environmental management e.g. aid for irrigation equipment, if it leads to significant water savings • Better risk and crisis management e.g. aid compensation for disease and bad weather losses, only if farmer has taken out an insurance • Avoiding that big aid amounts go to large scale companies e.g. setting of an upper limit for investment aid for a farmer over a certain periode of years

  9. Legislative procedure • draft regulations/guidelines • February: block exemptions • March: Community Guidelines for State Aid in the Agricultural Sector • drafts will be sent to MS and discussed in the Advisory Committee • incorporation of requested changes into the drafts • re-consultation of the Advisory Committee • final text adopted by the College in the second half of 2006

  10. Thank you for your attention!

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