EC: State aid for pig farms notified by the Agriculture Ministry would violate European legislation

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The European Commission has recommended the Romanian authorities to use other means to help the domestic pig farms, as the state aid programme notified by the Agriculture Ministry would violate the European legislation, sources from the EC have told hotnews.ro on Friday.

The quoted sources said the EC has contacted the Romanian authorities regarding the proposal for state aid. The EC has shown that the aid would violate the European regulations in the field of state aid and the Common Agricultural Policy (CAP). The Commission provided the Romanian authorities other options to be considered, which would support the mentioned sector. “The next steps depend on Romanian authorities,” the EC sources have told hotnews.ro.

In early 2017 the Agriculture Ministry initiated a draft emergency ordinance providing that pig meat producers would have benefited by state aid of EUR 10,000.

President Iohannis sends law to parliament for review

On Thursday, President Klaus Iohannis has sent to parliament, for review, the law regarding the programme for pig meat in Romanian farms, which includes the state aid, claiming the document was adopted by ignoring the European regulations, the Presidential administration said.

The head of state underscored that in the field of state aid and competition, the European Commission is the only institution to decide on the compatibility of the bill with European regulations.  The state aid framework is set by the Treaty on the Functioning of the European Union (TFEU). According to article 107 paragraph (1) of the TFEU, with the exception of derogations provided for in the treaties, the aid granted by a state or through state resources, in any form whatsoever, which distort or threaten to distort competition by favouring certain companies or the production of certain goods is incompatible with the internal market, insofar they affect the trade between Member States.

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