Commission declares Greek state aid in the cereal sector incompatible with EU law

The European Commission today adopted a negative final decision on aid granted by the Greek state to the cereal sector (case C36/2010). The aid, granted from 2008, took the form of (i) loans amounting to EUR 150 million granted to unions of agricultural cooperatives with the guarantee of the state, and (ii) the subsidisation of the interest for these loans. The aim of the aid was the financial support of cereal producers, following the over-production of cereals in 2008 and the subsequent fall of prices.