The European Commission has recently launched a public consultation on its State aid framework in the agriculture sector, which is set to expire in December 2020. State aid control in the period 2021 to 2027 needs to be adapted to the future legal framework of the Common Agricultural Policy. The European Commission aims at strengthening the level playing field in the agriculture sector as well as fostering competitiveness and growth of the enterprises concerned.
The review of the rules is also expected to take into consideration factors related to climate and sustainable use of natural resources. European stakeholders are thus invited to provide their input to shape the future legal framework. Environmental NGOs have already advocated for an end to State aids for those agricultural practices that have a negative environmental impact, such as intensive livestock farming. However, such an option is likely to affect negatively many small and medium enterprises.