2008/853/EC: Council Decision of 20 October 2008 on the granting of an emergency State aid by the authorities of Cyprus to mitigate the consequences of drought in 2007/2008 in the agricultural sector
Date: 2008-10-20
Institutions: Council of the European Union
Subjects: Romania, State aid, aid to agriculture, drought, farming sector

13.11.2008

EN

Official Journal of the European Union

L 302/7

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

II

DECISIONS

COUNCIL

COUNCIL DECISION

of 20 October 2008

on the granting of an emergency State aid by the authorities of Cyprus to mitigate the
consequences of drought in 2007/2008 in the agricultural sector

(2008/853/EC)

THE COUNCIL OF THE EUROPEAN UNION,

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
Cyprus on 19 September 2008,

Whereas:

(1)

(2)

(3)

On 19 September 2008, Cyprus presented to the Council
a request for a decision in accordance with the third
subparagraph of Article 88(2) of the Treaty, declaring
to grant national aid to
that
Cypriot
in order to
allow them to begin the next season's production cycle
is compatible with the common market.

farmers hit by extreme drought

the plan of Cyprus

Cyprus has faced the second most severe and longest
drought since 1900, due to rainfall deficit in 2007 and
2008, August 2008 having proven the hottest month of
the last decade and precipitation from January to August
2008 having been only 50 % of normal levels.

According to preliminary data concerning the 2008
harvest, 95 % of
cereal-producing areas have not
yielded any crop at all, whereas fodder production has
fallen so drastically that it has failed to cover even the
minimum feed requirements of ruminant animals.

(4)

(5)

(6)

From a quantity of about 150 million m3 or 54,7 % of
capacity at the end of 2005, Cyprus' network of dams
currently holds only 11 million m3 or 4 % of
total
capacity, obliging the authorities to strictly ration the
water supply for irrigation purposes at the beginning of
2007 and to cut it down to zero in 2008.

for

risk and crisis management.

These damages must be considered all the more serious
and exceptional, given that Cyprus put in place effective
tools
In particular,
Cyprus applies improved irrigation techniques in almost
95 % of the area under irrigation and has introduced
water pricing policies
to
discourage excessive water consumption and losses, as
well as promoted and provided incentives for the instal­
lation of water recycling systems in houses. Furthermore,
Cyprus' National Rural Development Programme 2007-
2013 already includes a number of measures to improve
the use of water.

and punitive measures

farmers affected by the
Since the income of Cypriot
drought has been drastically reduced,
they face the
serious risk of not having the financial means to meet
the immediate needs of their families and to start a new
season,
leading to an imminent danger of land aban­
donment, soil erosion and desertification.

(7)

The State aid to be granted amounts to EUR 67,5 million
and will benefit 34 000 eligible farmers and 3 000
livestock keepers.

(8)

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

L 302/8

EN

Official Journal of the European Union

13.11.2008

(9)

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

(10)

Exceptional circumstances therefore exist, making it possible to consider such aid, by way of dero­
gation and to the extent strictly necessary to remedy the emergency situation which has risen, to be
compatible with the common market,

HAS ADOPTED THIS DECISION:

Article 1

Exceptional additional aid by the Cypriot authorities to the agricultural sector, amounting to a maximum of
EUR 67,5 million, shall be considered to be compatible with the common market.

This Decision is addressed to the Republic of Cyprus.

Article 2

Done at Luxembourg, 20 October 2008.

For the Council
The President

J.-L. BORLOO