EU allocates €20 million in state aid to Friuli Venezia Giulia to help offset the high cost of fuel and fertilisers

Brussels – €20 million has been approved for agricultural and fisheries businesses in Friuli Venezia Giulia. The European Commission today (3 August) approved a State aid scheme to support the region, which has been hit by rising prices for fuel and fertilisers caused by the crisis in the Middle East, triggered by the US and Israeli war in Iran and the subsequent closure of the Strait of Hormuz. The scheme was approved under the Temporary State aid framework for the Middle East crisis (METSAF), an instrument adopted by the Commission on 29 April to enable Member States to support businesses affected by soaring energy, fuel and fertiliser prices. 

The scheme will run until 31 December 2026 and, in the case of Friuli, aims to “mitigate the impact of rising prices of fuel and fertilisers for agriculture, as well as fuel for fisheries and aquaculture.” The aid will be provided in the form of direct grants and subsidised loans, the amount of which will be determined on the basis of the area used for agricultural production and estimates of fuel consumption in fishing and aquaculture activities. Disbursed by the region, the aid is subject to a maximum limit of €50,000 per beneficiary. 

In its official communications, the Commission has stated that it has assessed the validity of the scheme in accordance with Community law. In particular, it was emphasised that the Treaty on the Functioning of the European Union—more specifically Article 107(3)(c)—allows Member States to support the development of certain economic activities under certain conditions. The same applies to Sections 1 and 2.1 of METSAF. The Berlaymont concluded that this 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” and, on that basis, approved it. 

The METSAF allows Member States to provide aid to businesses in the agriculture, fisheries, and transport sectors (road, rail, inland waterway and short-sea shipping within the EU): up to 70 per cent of the additional costs resulting from the rise in fuel and fertiliser prices caused by the crisis, as verified “at beneficiary level without an upper limit,” and up to €50,000 for additional fuel costs, which may also be estimated on the basis of relevant indicators for the calculation.