The European Commission (EC) has approved a €1 billion Italian scheme to support farmers affected by flood events.

The Commission grant approval to Italy to implement aid to companies active in the agricultural sector affected by the flood and landslide events that occurred in May 2023 in the regions of Emilia-Romagna, Tuscany and Marche.

The objective of the scheme is to support investments aimed at restoring the agricultural production, and to compensate companies active in primary agricultural production for the damages suffered.

Margrethe Vestager, EC executive vice-president in charge of competition policy said this will allow Italy to adequately help farmers who were affected.

“Farmers will be compensated for the damages suffered, including lost incomes, without distorting competition.”

Scheme

The scheme, which is open to companies of all sizes, will run until 1 May 2027.

The aid will take the form of direct grants covering up to 100% of the eligible investment costs incurred for restoring the agricultural production and up to 100% of the damages incurred by companies as a direct consequence of the natural disasters.

The eligible costs include compensation for damage to buildings, equipment, machinery, and stock, the loss of income resulting from the full or partial destruction of the agricultural production and the other costs incurred.

The EC said it has introduced an appropriate mechanism to ensure that there will be no overcompensation.

In addition, the Commission said the scheme is “necessary and appropriate” to ensure that farmers implement measures to immediately restore their agricultural production and resume their activities.

“The scheme brings about positive effects that outweigh any potential distortion of competition and trade in the European Union.”