The Ministry of Agriculture eases labor retention obligations related to some subsidies

The reliefs are of great help to drought-stricken economies (Photo: Pixabay)

In recent years, numerous calls for tenders supporting the investments of agricultural producers, processors and forest managers have appeared and significant sums have been awarded for development, however, the implementation of projects started with the help of subsidies requires a huge effort on the part of the beneficiaries. Since the adoption of the Rural Development Program in 2015, businesses that have received investment subsidies are required to maintain employment at least at the same level, and there is no way to retroactively modify this requirement based on previous consultation with the European Commission. At the same time, under the current unfavorable circumstances, the Ministry of Agriculture tries to help investors in every possible way, which is why a decision was made to mitigate the legal consequences related to this regulation.

Such a change must be expected

According to the previous regulations, if the beneficiaries do not comply with the obligation to maintain employment, the supporter automatically withdraws from the supporter contract and demands back the support paid. Since the labor market situation and the current economic situation, which is affected by the virus, represent a significant challenge for the economies, all relevant calls will be modified – with mitigation that can be done within the competence of the respective member states. Pursuant to this, the withdrawal of support does not occur automatically, the Managing Authority will consider it taking into account the unique circumstances and the economic effects of the past period affecting certain businesses. The mitigation also affects the investments of livestock keepers, horticultural businesses, food processors and forest managers, and amendments to the relevant call for tenders are constantly appearing.

AM