The European Commission has approved the 77.1 million euros in Hungarian state agricultural subsidies

By: STA Date: 2023. 06. 27. 10:30

The European Commission approved that the Hungarian state provide 77.1 million euros (about HUF 29 billion) in support to agricultural, fishing and food industry enterprises in connection with the Russian war against Ukraine, the commission informed on Tuesday. According to the announcement from Brussels, the Hungarian state aid program was approved on the basis of the temporary crisis and transition framework for state aid adopted in March, which aims to support measures taken in key sectors in terms of accelerating the green transition and reducing dependence on fuels.

(Photo: Pixabay)

The Hungarian state provides assistance in the form of subsidized loans within the framework of the program, with a maximum value of HUF one billion as a beneficiary. The aim of the measure is to facilitate the liquidity of the beneficiaries who are entitled to support and are affected by rising inflation and rising gas and electricity prices due to the current crisis, they recalled in the announcement.

The European Commission has examined the program in advance

It found that it meets the conditions set out in the temporary crisis and transition framework. According to the conditions, the maturity of the loans cannot exceed 6 years, the interest rates of the loans meet the specified minimum levels, the support applies to working capital needs and is provided until December 31, 2023 at the latest. The EU committee came to the conclusion that the Hungarian state aid program “is necessary, adequate and proportionate to remedy a serious disturbance in the economy of a member state in accordance with the conditions set out in the framework”. Following the EU state aid rules, the Brussels board approved the program based on this, they informed.

MTI