EU Approves $1.2Bln Support Scheme For Italian Agricultural Sector Amid Ukrainian Conflict

(@FahadShabbir)

EU Approves $1.2Bln Support Scheme for Italian Agricultural Sector Amid Ukrainian Conflict

The European Commission on Wednesday approved a 1.2 billion euros (about $1.3 billion) support scheme for Italian economy to bolster the country's agricultural, forestry, fishery and aquaculture sectors amid the ongoing military conflict in Ukraine, providing for aid payments and tax reductions for eligible companies within these fields

MOSCOW (UrduPoint News / Sputnik - 18th May, 2022) The European Commission on Wednesday approved a 1.2 billion Euros (about $1.3 billion) support scheme for Italian economy to bolster the country's agricultural, forestry, fishery and aquaculture sectors amid the ongoing military conflict in Ukraine, providing for aid payments and tax reductions for eligible companies within these fields.

"The scheme was approved under the State aid Temporary Crisis Framework, adopted by the Commission on 23 March 2022, based on Article 107(3)(b) of the Treaty on the Functioning of the European Union ('TFEU'), recognising that the EU economy is experiencing a serious disturbance," the statement said.

Eligible beneficiaries will have an opportunity to receive fixed amounts of aid in one of the following forms: directs grants, tax or payments advantages, repayable advances, reduction or exemption from social security and welfare payments, according to the statement.

"The measure will be open to companies of all sizes active in the agricultural, forestry, fishery and aquaculture sectors affected by the price increase of electricity, animal feed and fuel caused by the current geopolitical crisis and the related sanctions," it added.

Eurozone inflation has been on the rise for months. Coupled with the disruption of supply chains due to the Russian military operation in Ukraine, this spurred energy prices and caused shortage.