The European Commission has approved a 54 million euro ($62.7 million) state aid package which Spain will provide to agribusiness companies as they struggle with a rise in the cost of fuel since the outset of the three-month old Iran war.
The Commission said it approved the aid package in accordance with the Middle East Crisis Temporary State Aid Framework, or Metsaf, which it adopted on April 29. It contains provisions enabling state aid related to higher prices for diesel for the late March to late June period. The scheme will run until Dec. 31.
Spain notified the Commission that the scheme would seek to support companies involved in the production of farm produce and offset some of the higher costs they face.
Companies can apply for grants that provide 0.20 euros for each liter of diesel bought between March 22 and June 30. That alone would help to cover 70% of the price increases the companies face, the Commission's statement said.
It said that it found the scheme was compliant with Metsaf conditions and met the standards of being necessary, appropriate and proportionate and not adversely affecting trading conditions to the detriment of wider societal interests.