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Economy

EU extends scope of general exemption for public aid for projects

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Today (23 July) the Commission adopted an extension of the scope of the General Block Exemption Regulation (GBER), which will allow EU countries to implement projects managed under the new financial framework (2021 - 2027), and measures that support the digital and green transition without prior notification.

Executive Vice President Margrethe Vestager said: “The Commission is streamlining the state aid rules applicable to national funding that fall under the scope of certain EU programmes. This will improve further the interplay between EU funding rules and EU state aid rules under the new financing period. We are also introducing more possibilities for member states to provide state aid to support the twin transition to a green and digital economy  without the need of a prior notification procedure.”

The Commission argues that this will not cause undue distortions to competition in the Single Market, while making it easier to get projects up and running.  

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The concerned national funds are those relating to: Financing and investment operations supported by the InvestEU Fund; research, development and innovation (RD&I) projects having received a “Seal of Excellence” under Horizon 2020 or Horizon Europe, as well as co-funded research and development projects or Teaming actions under Horizon 2020 or Horizon Europe; European Territorial Cooperation (ETC) projects, also known as Interreg.

Projects categories that are considered to help the green and digital transition are: Aid for energy efficiency projects in buildings; aid for recharging and refuelling infrastructure for low emission road vehicles; aid for fixed broadband networks, 4G and 5G mobile networks, certain trans-European digital connectivity infrastructure projects and certain vouchers.

In addition to the extension of the scope of the GBER adopted today, the Commission has already launched a new revision of the GBER aimed at streamlining state aid rules further in light of the Commission priorities in relation to the twin transition. Member states and stakeholders will be consulted in due course on the draft text of that new amendment.

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Agriculture

Common Agricultural Policy: How does the EU support farmers?

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From supporting farmers to protecting the environment, the EU's farm policy covers a range of different goals. Learn how EU agriculture is funded, its history and its future, Society.

What is the Common Agricultural Policy?

The EU supports farming through its Common Agricultural Policy (CAP). Set up in 1962, it has undergone a number of reforms to make agriculture fairer for farmers and more sustainable.

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There are about 10 million farms in the EU and the farming and food sectors together provide nearly 40 million jobs in the EU.

How is the Common Agricultural Policy funded?

The Common Agricultural Policy is funded through the EU budget. Under the EU's budget for 2021-2027, €386.6 billion has been set aside for farming. It is divided into two parts:

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  • €291.1bn for the European Agricultural Guarantee Fund, which provides income support for farmers.
  • €95.5bn for the European Agricultural Fund for Rural Development, which includes funding for rural areas, climate action and the management of natural resources.

How does EU agriculture look today? 

Farmers and the agriculture sector were affected by COVID-19 and the EU introduced specific measures to support the industry and incomes. Current rules on how CAP funds should be spent run until 2023 due to delays in budget negotiations. This required a transitional agreement to protect farmers’ incomes and ensure food security.

Will the reform mean a more environmentally-friendly Common Agricultural Policy?

EU agriculture accounts for about 10% of greenhouse gas emissions. The reform should lead to a more environmentally friendly, fairer and transparent EU farm policy, MEPs said, after a deal was reached with the Council. Parliament wants to link CAP to the Paris agreement on climate change, while increasing support to young farmers and small and medium-sized farms. Parliament will vote on the final deal in 2021 and it will come into effect in 2023.

Agriculture policy is linked to the European Green Deal and the Farm to Fork strategy from the European Commission, which aims to protect the environment and ensure healthy food for everyone, whilst ensuring farmers’ livelihoods.

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Agriculture

Proposed lift on USA lamb ban welcome news for industry

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The FUW met with the USDA in 2016 to discuss lamb export opportunities. From left, US agricultural specialist Steve Knight, US Counselor for agricultural affairs Stan Phillips, FUW senior policy officer Dr Hazel Wright and FUW President Glyn Roberts

The Farmers’ Union of Wales has welcomed news that the long standing ban on importing Welsh lamb into the United States is to be lifted soon. The announcement was made by UK Prime Minister Boris Johnson on Wednesday 22 September. 

The FUW has long discussed the prospect of lifting the unjustified ban with the USDA in various meetings over the past decade. Hybu Cig Cymru - Meat Promotion Wales have highlighted that the potential market for PGI Welsh Lamb in the USA is estimated to be worth as much as £20 million a year within five years of the export restrictions being removed.

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Speaking from his Carmarthenshire sheep farm, FUW Deputy President Ian Rickman, said: “Now more than ever we need to explore other export markets while also protecting our long established markets in Europe. The US market is one we are keen to develop much stronger relationships with and the news that this ban could soon be lifted is most welcome news for our sheep industry.”

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Economy

Sustainable urban transport takes centre stage for European Mobility Week

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Around 3,000 towns and cities across Europe are participating in this year's European Mobility Week, which started yesterday and will last until Wednesday, 22 September. The 2021 campaign has been launched under the theme ‘Safe and healthy with sustainable mobility', and will promote the use of public transport as a safe, efficient, affordable, and low-emission mobility option for everyone. 2021 is also the 20th anniversary of car-free day, from which the European Mobility Week has grown.

“A clean, smart and resilient transport system is at the core of our economies and central to people's lives. This is why, on the 20th anniversary of the European Mobility Week, I am proud of the 3,000 cities across Europe and beyond for showcasing how safe and sustainable transport options help our communities to stay connected during these challenging times,” said Transport Commissioner Adina Vălean.

For this landmark year, the European Commission has created a virtual museum showcasing the history of the week, its impact, personal stories, and how it links with the EU's broader sustainability priorities. Elsewhere, activities around Europe include bicycle festivals, exhibitions of electric vehicles and workshops. This year's event also coincides with a public consultation on the Commission's ideas for a new urban mobility framework, and the European Year of Rail with its Connecting Europe Express train.

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