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Floods: EU Grants and Loans

Volume 475: debated on Thursday 15 May 2008

To ask the Secretary of State for Environment, Food and Rural Affairs whether state aid rules apply to monies dispensed from the European Solidarity Fund to address problems faced by farmers as a result of recent severe flooding. (205891)

Monies received from The European Union Solidarity Fund (EUSF) are not subject to European Agricultural State Aid rules. EUSF funds are specifically to help member states meet the uninsurable costs to public bodies of dealing with natural disasters and are not for use in any sector-specific support measures that may threaten to distort the market and would therefore require state aid clearance.