2007/722/EC: Council Decision of 22 October 2007 on the granting of an emergency State aid by the authorities of Romania to mitigate the consequences of drought in 2006/2007 in the agricultural sector
Date: 2007-10-22
Institutions: Council of the European Union
Subjects: Romania, State aid, aid to agriculture, drought

10.11.2007

EN

Official Journal of the European Union

L 293/5

(Acts adopted under the EC Treaty/Euratom Treaty whose publication is not obligatory)

II

DECISIONS

COUNCIL

COUNCIL DECISION

of 22 October 2007

on the granting of an emergency State aid by the authorities of Romania to mitigate the
consequences of drought in 2006/2007 in the agricultural sector

(2007/722/EC)

THE COUNCIL OF THE EUROPEAN UNION,

accelerated water evaporation caused by higher than
average temperatures during winter 2006-2007 and
spring 2007.

Having regard to the Treaty
establishing the European
Community, and in particular Article 88(2), third subparagraph,
thereof,

Having regard to the request made by the Government of
Romania on 25 July 2007,

Whereas:

(1)

(2)

(3)

On 25 July 2007, Romania presented to the Council a
request for a decision in accordance with the third sub-
paragraph of Article 88(2) of the Treaty, declaring that
the plan of Romania to grant national aid to Romanian
farmers hit by extreme drought in order to allow them to
restart
the production cycle is compatible with the
common market.

Romania has faced the most severe and longest drought
in the last 60 years, due to rainfall deficit in winter
2006/2007 and spring 2007 (less than 350 mm/m2
from 1 September 2006 to 31 May 2007)
and
extremely high temperatures in the summer of 2007.

Before the long-lasting spell of dry weather
in the
summer of 2007, water reserves in the soil had already
strongly decreased in large parts of Romania, due to

(4)

(5)

(6)

(7)

According to the assessment of the impact on spring and
autumn crops, the drought has dramatically reduced both
the cereal and the fodder production, with the estimated
average cereal production in 2007 reaching not even
45 % of the average of previous years.

Romanian farmers in 34 counties from a total of 42
have been severely hit by the long-lasting spell of dry
weather, which has resulted in major damages to the
vegetal and animal breeding sectors, with an estimated
value amounting to approximately EUR 1 200 million
(RON 3 878 million), not
that
could have resulted from sales of the cereals.

including the profit

Since the income of Romanian farmers affected by the
drought has been drastically reduced,
they face the
serious risk of not having the financial means to plant
the autumn crops and to prepare the 2008 spring
sowing campaign.

The State aid to be granted amounts to approximately
EUR 400 million (RON 1 320 million) and will benefit
some 250 000 to 300 000 farmers, accounting for
approximately 3 million hectares. The respective aid
amounts will be
for
autumn wheat, 120 EUR/ha for
rapeseed and 130
EUR/ha for barley and other autumn crops.

approximately 150 EUR/ha

L 293/6

EN

Official Journal of the European Union

10.11.2007

(8)

The aid will be granted on farmer’s application only, for
the specific purpose of restarting the production cycle
(purchase of seeds, fuel, fertilisers and pesticides). The
Romanian Payment Agency will monitor and control
the aid, inter alia, by carrying out on-the-spot checks.

(9)

In order to be effective, the State aid must be granted and
accessed by farmers as soon as possible.

HAS ADOPTED THIS DECISION:

Article 1

additional

Exceptional
the Romanian authorities
sector, amounting to a maximum of
to the agricultural
EUR 400 million, shall be considered to be compatible with
the common market.

aid by

(10)

The Commission has not at this stage given an opinion
on the nature and compatibility of the aid.

This Decision is addressed to Romania.

Article 2

(11)

Exceptional circumstances
therefore exist, making it
possible to consider such aid, by way of derogation
and to the extent
strictly necessary to remedy the
emergency situation which has risen, to be compatible
with the common market on the terms specified in the
Decision,

Done at Luxembourg, 22 October 2007.

For the Council
The President

J. SILVA