State aid: Commission approves €200 million Flemish scheme to compensate for reduction or closure of pig production

The European Commission has approved, under EU state aid rules, a €200 million Flemish scheme to compensate pig producers for reducing or entirely closing their production capacity. The aim of the scheme is to reduce nitrogen emissions in the agricultural sector that result from pig production.

The scheme is open to micro, small and medium-sized companies operating a pig breeding unit in Flanders. Under the scheme, the aid will take the form of direct grants amounting to up to 120% of the loss of value of assets, namely of pigs and facilities, related to the closure of capacity. The scheme will run until 30 June 2025.

The Commission assessed the scheme under EU State aid rules, and in particular Article 107(3)(c) of the Treaty on the Functioning of the EU, which enables member states to support the development of certain economic activities under certain conditions, and the Guidelines for state aid in the agricultural and forestry sectors and in rural areas. The Commission found that the scheme is necessary and appropriate to support the reduction of nitrogen emissions in the agricultural sector and thereby to contribute to environmental protection, in line with the objectives of the European Green Deal. Furthermore, the Commission concluded that the scheme is proportionate, as it is limited to the minimum necessary, and that it has a limited impact on competition and trade between member states. On this basis, the Commission approved the Belgian scheme under EU state aid rules.

The non-confidential version of the decision will be made available under the case number SA.103681 in the state aid register on the Commission's competition website once any confidentiality issues have been resolved.

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