Romania remains without state aid for agriculture starting 2010

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Romania can no longer grant state aid for agriculture, starting in 2010, announced on Tuesday, Sept 8, minister of Agriculture Ilie Sarbu, at the parliamentary inquiry committee for irrigation.

„The European Commission rejected the granting of any state aid, starting in 2010, in agriculture, including those for the irrigation sector, in spite of the steps made for their prolongation, ” said Sarbu.

According to him, the Ministry of Agriculture is seeking other solutions for the granting of other forms of support per ha, such as the improvement in the excise for gas oil or other forms accepted by the EU.

„The subsidies per ha from the EU will continue to be granted also in 2010, they are in a gradual rise up to the level of those in the EU, but for irrigation neither electricity nor water can be given subsidies for any longer,” Sarbu also said.

According to him, in the irrigation sector, investment by PNDR can be made, under measure 125.
The minister also said that it will be difficult for the water users organizations, OUAI, from 2010, because of the lack of this aid, but the subsidies that the ministry is granting on an annual basis will be covered.

The Ministry of Agriculture gave subsidies for OUAI, namely 90 percent of the costs of energy for irrigation and 80 percent of the multi-annual tariff for water.
All this aid represented around 30 percent of the costs for energy for irrigation, that is the subsidy we are giving naturally, ” said Ilie Sarbu.

Valentin Apostol, general director in the said Ministy in the sector of land reclamation, said that the answer of the EC on the stoppage of the state aid in the field of irrigation came ten days ago.
According to the Treaty of accession to the EU, the state aid could be granted three years after the EU accession.

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