The European Commission has approved a €2.7 million scheme by Cyprus to support small and medium-sized enterprises (SMEs) active in the agricultural and livestock production, affected by the coronavirus outbreak. The scheme was approved under the State aid Temporary Framework. Cyprus notified to the Commission a scheme under which the public support takes the form of non-payment of lease contracts for years 2020 and 2021 due to the State on lots and allotment of land belonging to Turkish Cypriots (managed by the Ministry of Interior), State land and forest land. The scheme aims at mitigating the liquidity shortages that the beneficiaries are facing because of the coronavirus outbreak. The aid amount will correspond to the lease due. The Commission found that the Cypriot scheme is in line with the conditions set out in the Temporary Framework. In particular, the aid (i) will not exceed €225,000 per beneficiary active in agricultural production or €1.8 million per beneficiary active in forestry; and (ii) will be granted no later than 31 December 2021. 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 EU State aid rules. More information on the Temporary Framework and other 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.63515 in the State aid register on the Commission's competition website once any confidentiality issues have been resolved.
- Publication date
- 24 September 2021