Abida Shaheen
Brussels: The European Commission this week approved a €212 million support package proposed by France to help farmers and aquaculture operators cope with rising fuel costs that have significantly increased production expenses.
The aid scheme is aimed at the agriculture and aquaculture sectors, which have been heavily impacted by a sharp rise in non-road diesel fuel prices in recent months.
According to the Commission, fuel costs surged after global supply disruptions pushed up energy prices, placing additional pressure on food production and fisheries operations across France and other European countries.
The approved French plan will cover a four-month period from May to August and will provide direct financial compensation to affected businesses based on fuel consumption. Companies will receive €0.15 per litre of non-road diesel used during the eligible period.
The European Commission said the measure was authorised under its temporary state aid framework, which allows EU member states to support sectors facing exceptional cost pressures while ensuring fair competition within the single market.
Officials noted that similar support schemes have already been introduced or approved in other EU countries, including Spain, Ireland and the Netherlands, particularly for fisheries and related industries.
The Commission said the French programme meets the required conditions of necessity and proportionality and is designed to offset part of the cost increases without distorting competition within the bloc.
The support framework allows governments to compensate up to 70 percent of the increase in fuel costs experienced by eligible sectors.
French authorities had argued that rising fuel prices were placing significant strain on agricultural and aquaculture production, increasing operational costs and threatening competitiveness in key rural and coastal industries.
The Commission’s approval clears the way for the French government to begin disbursing payments to eligible operators in the coming months.