THE EU STATE AID REGIME IN AGRICULTURE –LEGAL ASPECT

Abstract

State aid to certain economic sectors in the European Union was an acceptable model until the establishment of the single market in 1992. The EC acknowledge that the allowance is imputable to the MS and that it constitutes State aid. In the light of the foregoing, the Commission concludes that the measures at issue in the present case constitute State aid (Article 107(1) TFEU).”Special rules on provision of state aids were created as secondary law rules by the EU Council and EU Commission”. State aid to promote the economic development of the agricultural sector is part of the wider framework of the “Common Agricultural Policy” (“CAP”). This paper analyzes EU state aid regulation in the agriculture sector, with special focus on the provisions of the “Agriculture Block Exemption Regulation” – ABER. The paper also analyzes agricultural aid, which must be notified to the EC as being authorized under the “Agriculture Guidelines”.