EC approves €560,000 Cypriot scheme to support producer groups and organisations

The European Commission has approved an approximately €560,000 Cypriot scheme to support producer groups and producer organisations active in the distribution of agricultural products in Cyprus affected by the coronavirus outbreak. The Commission concluded that the measure is necessary, appropriate and proportionate to remedy a serious disturbance in the economy of a Member State, in line with Article 107(3)(b) TFEU and the conditions set out in the Temporary Framework. On this basis, the Commission approved the measure under the EU State aid rules.

According to the European Commission, the scheme was approved under the State aid Temporary Framework. The public support will take the form of direct grants. The aim of the scheme is to address the liquidity needs of enterprises that suffered a decrease in sales and an increase in their operating costs. The Commission found that the Cypriot scheme is in line with the conditions set out in the Temporary Framework. In particular, (i) the aid will not exceed €100,000 per beneficiary; and (ii) the aid can be granted until 30 June 2021.