Funding help to massive enterprises for the restructuring of orchards and irrigation
Czechia notified to the Fee its plans to implement two help schemes to assist undertakings energetic within the agricultural sector regardless of their dimension in investing within the restructuring of orchards and irrigation. The estimated funds of the schemes was €52.4 million and €21m respectively.
The Fee discovered that the help that the Czech authorities plan to grant sooner or later below the 2 notified schemes is consistent with the situations set out within the 2014 Agricultural State help Pointers with respect to all kinds of beneficiaries. On this foundation, the Fee accredited the measures below EU state help guidelines.
As regards the previous, throughout its evaluation of the proposed measures, the Fee discovered that, within the earlier years, a few of the beneficiaries of these schemes had been erroneously certified by the Czech granting authorities as small or medium-sized enterprises (SMEs), whereas they have been in actual fact massive undertakings. The Fee discovered that these massive undertakings had obtained help on the premise of current Czech schemes, that are block exempted below the Agriculture Block Exemption Regulation and are accessible solely to SMEs.
The Fee’s 2014 Agricultural State help Pointers allow member states to grant funding help in favour of enterprises of all sizes, topic to sure situations. When funding help is granted to massive enterprises, due its potential distortive results, sure further situations have to be met to make sure that attainable competitors distortions are minimised. Particularly, funding help to massive enterprises should: (i) have an actual incentive impact, i.e. the beneficiaries wouldn’t perform the funding within the absence of the general public assist (particularly a ‘counterfactual state of affairs’ describing the scenario absent the help); and (ii) be stored to the minimal essential based mostly on particular info.
At this stage, the Fee has doubts that the help already granted by Czechia to the massive enterprises complies with these situations, particularly as a result of absence of the submission of a counterfactual state of affairs to make sure that help granted to massive undertakings up to now was proportionate.
The Fee will now examine additional to find out whether or not its preliminary issues are confirmed. The opening of an in-depth investigation supplies all events with a chance to touch upon the measure. It doesn’t prejudge in any means the result of the investigation.
Support to assist crop and livestock insurance coverage premium for giant enterprises
Czechia notified the Fee of its plans to grant €25.8m of public assist for crop and livestock insurance coverage premium for giant enterprises.
The Fee’s evaluation revealed that such assist had already been granted up to now to beneficiaries that had been erroneously certified by the Czech granting authorities as SMEs, whereas they have been in actual fact massive enterprises.
At this stage, the Fee has doubts that Czech help for crop and livestock insurance coverage premiums up to now complies with the necessities foreseen by the 2014 Agricultural State help Pointers for giant enterprises. On this respect, within the absence of the submission of a counterfactual state of affairs by the beneficiaries that have been erroneously certified as SMEs, it’s unlikely that the Czech authorities may make sure that the help granted to massive undertakings had an incentive impact.
Below the scheme notified by Czechia, the beneficiaries should apply for the help solely on the stage of the fee of the insurance coverage premium, and never earlier than signing the insurance coverage contract. The Fee has subsequently doubts at this stage that the measure has an actual incentive impact, in different phrases that the beneficiaries wouldn’t conclude insurance coverage contracts within the absence of the general public assist. Additionally within the case of previous and deliberate help to assist crop and livestock insurance coverage premium for giant enterprises, the Fee will now examine additional to find out whether or not its preliminary issues are confirmed. The opening of an in-depth investigation supplies all events with a chance to touch upon the measure. It doesn’t prejudge in any means the result of the investigation.
In view of the customarily decreased financing potentialities of farmers, the Fee’s 2014 Pointers for State help within the agricultural and forestry sectors and in rural areas enable Member States to assist investments and insurance coverage premiums for undertakings. Nevertheless, the measures ought to meet a variety of situations, notably:
- The ‘incentive impact’ precept: the help utility should be submitted earlier than the beginning of the aided exercise;
- the requirement for giant enterprises of proving the ‘incentive impact’ via a ‘counterfactual state of affairs’: they should submit documentary proof displaying what would have occurred in a scenario during which the help had not been granted;
- the help should respect be proportionate, and;
- particular situations associated to eligible actions, eligible prices and help depth.
Small and medium-sized enterprises (SMEs) are outlined in Annex I to Fee Regulation (EU) 702/2014. The identical Regulation explains that the event of SMEs could also be restricted by market failures. SMEs sometimes have issue in acquiring capital or loans, given the risk-averse nature of sure monetary markets and the restricted collateral that they are able to provide. Their restricted assets might also prohibit their entry to info, notably as regards new expertise and potential markets. Because the Union Courts have persistently confirmed, the definition of an SME needs to be interpreted strictly.
The non-confidential model of the choices will probably be made accessible below case numbers SA.50787, SA.50837, and SA. SA.51501 within the state help register on the Fee’s competitors web site as soon as any confidentiality points have been resolved. New publications of State help selections on the web and within the Official Journal are listed within the State Support Weekly e-Information.