The European Commission has approved a Romanian state aid scheme worth 59 million lei, equivalent to approximately 11 million euros, intended for pig farmers affected by rising fuel and fertiliser costs, which the Commission associates with the Middle East crisis.
The support will be provided in the form of direct grants and will cover additional costs incurred between 1 March and 31 December 2026. The amount of aid will be determined based on the increase in fuel and fertiliser prices affecting the beneficiary's production costs, with a ceiling of 50,000 euros per undertaking.
In brief
Romania may grant approximately 11 million euros, or 59 million lei, to pig farmers affected by higher fuel and fertiliser costs.
The aid will take the form of direct grants, calculated on the basis of the increase in production costs incurred by beneficiary undertakings between 1 March and 31 December 2026.
Each undertaking may receive no more than 50,000 euros under the scheme, which must be implemented by the end of the year.
The Commission authorised the measure under the Temporary State Aid Framework in the context of the Middle East crisis, adopted in April for sectors exposed to cost increases, including agriculture.
The decision is registered under number SA.124649. The non-confidential version is to be published in the state aid register after any confidentiality issues have been resolved.
The Romanian scheme was authorised under the Middle East Crisis Temporary State Aid Framework, or METSAF, the temporary framework created by the Commission to enable Member States to support certain sectors affected by the economic effects of the Middle East crisis. Agriculture is among the sectors for which the framework permits interventions related to additional fuel and fertiliser costs.
In Romania's case, the measure is limited to undertakings active in the pig farming sector. The Commission specifies that the support is intended for additional costs incurred by farmers directly affected during the period from the beginning of March to the end of the year, and that approval of the scheme does not mean that every beneficiary will automatically receive the maximum amount.
The actual amount of the grant will depend on the increase in fuel and fertiliser costs included in the calculation of production costs. The ceiling of 50,000 euros represents the maximum amount that may be granted to a single undertaking, while the scheme has an estimated total budget of 59 million lei.
METSAF was adopted by the Commission in April and is valid until 31 December 2026. The framework gives Member States the possibility of creating temporary measures for agriculture, fisheries and certain transport activities affected by rising fuel and fertiliser prices. The framework's general rules allow, under certain forms of support for agriculture, coverage of up to 70% of eligible additional costs.
The Commission's approval is necessary because measures financed from public resources that grant a selective advantage to certain undertakings are subject to European state aid control. In assessing the Romanian scheme, the Commission applied Article 107(3)(c) of the Treaty on the Functioning of the European Union, as well as the relevant sections of METSAF.
That Article permits the authorisation of aid intended to promote the development of certain economic activities where such aid does not adversely affect trading conditions to an extent contrary to the common interest. The Commission concluded that the Romanian scheme meets the conditions of the temporary framework and that the measure is necessary, appropriate and proportionate for the temporary support of undertakings in the pig farming sector.
European approval opens the possibility of granting the aid, but the effective implementation of the scheme and payment of the grants will depend on the measures adopted by the Romanian authorities within the authorised budget and conditions. The Commission's decision may be consulted under number SA.124649 after its non-confidential version is published.
Latest News
17:16
17:11
17:03
17:03
16:53
See more news