Malta’s subsidy to mitigate the impact of the Ukrainian war on wheat prices gives Brussels a green light
A Maltese scheme was approved by the European Commission on Wednesday with the aim of mitigating the impact of Russia’s invasion of Ukraine on wheat prices.
The € 30 million subsidy scheme will support companies active in the import, manufacture and wholesale of grain and other similar products.
The scheme was approved under the Temporary State Aid Crisis Framework, adopted by the Commission on 23 March recognizing that the EU economy is experiencing severe disruption.
Just today, the HICP index showed that food prices in Malta rose by 9% in April compared to the same month last year. The National Statistics Office said the higher price for bread had an impact on the food index. Overall, Maltese consumers saw prices rise by 5.4% in April, almost one percentage point more than in March.
The Commission’s green light offers relief at a time when inflation is eroding purchasing power.
Executive Vice President Margrethe Vestager, in charge of competition policy, said: “This € 30 million scheme will enable Malta to mitigate the economic impact of the Putin war in Ukraine and support active companies. in the importation of grain and other similar products affected by the current geopolitical crisis. ”
She said the EU would continue to work with Ukraine and its people, working closely with member states to ensure that national support measures could be put in place in a timely, coordinated manner. and effective, while protecting a level playing field in the single market. .
Malta had notified the Commission under the Temporary Crisis Framework of the € 30 million scheme to support companies of all sizes active in the import, manufacture and wholesale of grain and other similar products. The aid will take the form of a subsidized loan.
The maturity of the loan is limited to two years and the annual interest rates on the loan respect the minimum levels set out in the Temporary Framework. The loan agreements will have to be signed by 31 December 2022.