Key Takeaways
- The European Commission has approved a €100 million Lithuanian State aid scheme to support investment in the production, processing, and marketing of agricultural products, running until 31 December 2028.
- Aid will be delivered through loans targeting a market financing gap for farmers, linked to the specific objectives of the EU's strategic plans for agriculture under Regulation (EU) 2021/2115.
- Eligible investments must contribute to cross-cutting goals including reducing resource use, improving soil quality, climate adaptation, cutting ammonia emissions, and strengthening animal welfare standards.
- The Commission assessed the scheme under Article 107(3)(c) of the Treaty on the Functioning of the EU and the Guidelines for State aid in the agricultural and forestry sectors, finding it necessary, appropriate, and proportionate.
- The decision has been registered under case number SA.122686 in the EU State aid register.
European Commission Clears €100M Lithuanian State Aid Scheme for Agriculture
The European Commission has approved a €100 million State aid scheme submitted by Lithuania to support investment in agricultural production, processing, and marketing. The scheme will provide aid in the form of loans designed to address a recognised market financing gap for farmers, and is set to run until 31 December 2028.
Scope of Eligible Investments and Environmental Conditions
To qualify for support, investments must align with the specific objectives set out in the EU's strategic plans for the agricultural sector under Regulation (EU) 2021/2115. They must also contribute to cross-cutting aims including reducing resource consumption, improving soil quality, adapting to changing climate conditions, lowering ammonia air pollution, and strengthening animal welfare standards. The scheme is designed to complement EU-level agricultural policy priorities while addressing financing conditions that the private market has not adequately served.
European Commission Legal Assessment and Proportionality Finding
The Commission assessed the Lithuanian scheme under Article 107(3)(c) of the Treaty on the Functioning of the EU, which permits Member States to provide support for the development of certain economic activities under defined conditions, as well as the EU Guidelines for State aid in the agricultural and forestry sectors in rural areas. The Commission concluded that the scheme is necessary and appropriate to encourage investments in the targeted areas, proportionate in that it is limited to the minimum required, and unlikely to significantly distort competition or trade between Member States. On that basis, the scheme was formally approved under EU State aid rules. The non-confidential version of the decision will be published under case number SA.122686 in the EU State aid register once any confidentiality issues have been resolved.
