Direct State Aid Measures for Agriculture and Rural Development in Latvia

Abstract

Development of agriculture is a substantial element of a balanced development of a country, comprising the development of agricultural, forestry and fishery sectors as well as the aggregate of other economic, social, and ecological activities related to the rural environment. The two main types of state aid provided to agriculture and rural development include direct and indirect support. The state aid shall be fully consistent with the basic guidelines of the European Community regarding the support for agriculture. The aim of the research is to discuss the legal regulation in the sphere of state aid allocation and to analyse the dynamics and impact of allocated national subsidies for the development of agriculture and rural development. Currently, the requirements for allocation state aid in the form of subsidies undergo fundamental amendments within the framework of simplification of regulatory enactments of the EU CAP. The amendments relate to both the content and procedures of the requirements. The goal is to speed up the conformation and approval of state aid payments and to simplify the requirements for allocation of subsidies. It is envisaged that the amendments would not affect the targets of subsidies but they would provide more earmarked state support.