Breaking News on Food & Beverage Development - EuropeUS edition | Asian edition

Headlines > Science & Nutrition

Commission withdraws milk aid to Spain

14-Mar-2002

Related topics: Science & Nutrition

The European Commission decided on Wednesday that an aid scheme for milk producers in the region of Asturias (Spain) for the acquisition of milk quotas infringes the rules on State aid.

The Commission also decided to require reimbursement of this aid, which was granted in the form of an interest rate subsidy on the loans taken out by milk producers for the acquisition of milk quotas. The aid scheme was in force until 31 December 1998 and the budget amounted to €240 404.

 

The move follows complaints to the Commission that the aid was not compatible with European Union rules.

 

The Commission found that the aid scheme was in breach of the provisions of the common organisation of the market in milk and milk products, which prohibits the granting of aid for the purchase of quotas between farmers.

 

Spain now has to take all the measures necessary to implement this decision, in accordance with the procedures laid down in national law. The Spanish government is also requested to inform the Commission, within two months of the receipt of this decision, of the measures taken to comply with it.