The European Commission has approved under State aid rules a €20 million Lithuanian scheme to compensate Lithuanian companies active in the processing of agricultural products in the poultry and eggs sectors for the loss of revenue caused by the coronavirus outbreak. It is estimated that, under the scheme, approximately 25 enterprises will be entitled to compensation for the damages suffered. The support, in the form of grants, will be financed by the general budget of Lithuania. The Commission assessed the measure under Article 107(2)(b) of the Treaty on the Functioning of the EU (TFEU), which enables the Commission to approve State aid measures granted by Member States to compensate specific companies or specific sectors for the damages directly caused by exceptional occurrences, in conjunction with the EU Guidelines for State aid in the agricultural and forestry sectors and in rural areas 2014 to 2020.
The Commission found that the Lithuanian scheme will compensate damages that are directly linked to the coronavirus outbreak. It also found that the measure is proportionate, as the envisaged compensation does not exceed what is necessary to make good the damage. The Commission therefore concluded that the scheme is in line with EU State aid rules.
More information on actions taken by the Commission to address the economic impact of the coronavirus pandemic can be found here.
The non-confidential version of the decision will be made available under the case number SA.57508 in the State aid register on the Commission's competition website once any confidentiality issues have been resolved.