The European Commission has approved a €149 million (SEK 1.6 billion) state aid scheme for agricultural, fishing and aquaculture companies facing increased fuel and fertiliser prices due to the ongoing Middle East crisis. This is approved under the Middle East Crisis Temporary State Aid Framework (METSAF).
Sweden notified the Commission of a €149 million (SEK 1.6 billion) scheme to support companies active in the primary production of agricultural, fishery and aquaculture products. The scheme, which will run until 31st December 2026, aims to mitigate the impact of the increase in fuel and fertiliser prices.
The aid scheme takes the form of direct grants and corresponds to 85% of the estimated increase in fuel and nitrogen fertiliser costs for agricultural companies and in fuel costs for the fishery and aquaculture companies. The aid will not exceed €50,000 per company.
The Commission agreed that the scheme is in line with the conditions set out in the METSAF. In particular, aid will be granted based on a scheme with a clear estimated budget and will be provided to temporarily support the development of companies active in primary production of agricultural products. The Commission concluded that the scheme is necessary, appropriate and proportionate to facilitate the development of an economic activity and does not adversely affect trading conditions to an extent contrary to the common interest.
On this basis, the Commission approved the Swedish scheme under EU State aid rules.
