State aid and public procurement law

 

Aid for drought in agriculture

The prolonged dry and hot spell this summer is calling for state support for the farmers concerned. To what extent are they compatible with the EU ban on aid so that they do not have to be reclaimed later? [...]

Aid to agriculture in view of weeks of heat and drought in summer 2018 is in line with EU law. Although droughts under Art. 50 AGVO are no longer covered by the natural disasters under Art. 107 para. 2 lit. b) TFEU, they can still be subsumed under other exceptional events under this provision. This also applies to regular occurrences, as otherwise the functioning of agriculture would be threatened contrary to the internal market.

 

See publication:

Frenz, AUR 2018, 322