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EC Approves State Aid for German Flood-affected Farmers

04 July 2013

GERMANY - The European Commission (EC) has cleared €600 million in German compensation aid after flood damage to the country's agricultural sector.

The European Commission has given the green light for a German aid scheme to compensate German farmers for losses caused by natural disasters, confirming that it complies with EU state aid rules. Notified by the German authorities on 10 June 2013, the scheme provides €600 million for 2013-2014.

In concrete terms, this means that Germany may now start paying compensation for the damages caused by the recent floods, without prior authorisation. It may cover up to 100 per cent of income losses or damages to farm facilities, machinery and equipment, stock, crops and animals, caused by natural disasters like floods, earthquakes, avalanches and landslides.

In broader terms, this 'ex-ante framework scheme' is aimed at creating a flexible tool for prompt reaction in case of natural disasters. Having applied the scheme now, it means that Germany can initiate a similar scheme in similar circumstances in future without having to wait for clearance by the Commission, as long as details are subsequently notified.

ThePigSite News Desk

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