EU Commissioner for Agriculture Janusz Wojciechowski wrote a letter to Prime Minister Donald Tusk about state aid in agriculture. In it, he calls for raising at the EU summit the issue of expanding the possibility of providing state support to farmers after June 2024, a mechanism introduced in the EU after Russia’s aggression against Ukraine.
The so-called Temporary State Aid Framework was adopted two years ago, in March 2022, in connection with Russia’s aggression against Ukraine, to support economic entities affected by the economic consequences of the war in Ukraine, including farmers.
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Since May 2022, 22 Member States, with the consent of the European Commission, have provided their farmers with public support totaling around €10 billion, of which by far the largest support – around €4 billion – was provided by Poland.
As Wojciechowski informs in a letter seen by PAP, the European Commission has approved sixteen tranches of government aid over the past two years, including subsidies for fertilizer, grains, loans and fuel. The aid was – as the Commissioner emphasized – a great support for farmers affected by the economic consequences of the war, such as the increase in energy and fertilizer prices, the increase in imports from Ukraine and the destabilization of the grain market.
What next with the crisis framework?
The temporary crisis framework will expire in June 2024 and further national support for farmers in this mode will not be possible. So far, the Commission has no plans to extend this framework (although I have requested this extension as part of the Commission’s internal work), and there are no Member States initiatives in this area. The lack of government support for farmers affected by the consequences of Russian aggression against Ukraine will make it impossible to continue providing absolutely necessary assistance. This is especially a threat to Polish farmers, who are particularly affected by the consequences of this war
– Wojciechowski writes in the letter.
According to him, the extension of the state aid framework is even more justified because trade liberalization with Ukraine is extended for the third consecutive year (until June 2025). According to the Commissioner, this “liberalization has a negative impact on the situation of farmers in the EU, and especially in Poland.”
Mr Prime Minister, I am raising this issue as part of the Commission’s internal work, but the voice of Poland is very much needed here, whose farmers have been the most affected by the economic consequences of the war in Ukraine and so far have benefited most from the possibility of government support for farmers.
– summarizes Wojciechowski.
gah/PAP
Source: wPolityce