European Foundation
for the Improvement of
Living and Working Conditions

The tripartite EU agency providing knowledge to assist
in the development of better social, employment and
work-related policies

EU PolicyWatch

Database of national-level policy measures

Eurofound's EU PolicyWatch collates information on the responses of government and social partners to the COVID-19 crisis, the war in Ukraine, rising inflation, as well as gathering examples of company practices aimed at mitigating the social and economic impacts.

Factsheet for measure EE-2015-12/2972 – measures in Estonia

Support for the diversification of economic activities in rural areas

Maapiirkonnas majandustegevuse mitmekesistamise investeeringutoetus

Country Estonia , applies nationwide
Time period Temporary, 20 March 2015 – 06 September 2023
Context Green Transition, Restructuring Support Instruments
Type Legislations or other statutory regulations
Category Supporting businesses to stay afloat
– Direct subsidies (full or partial) or damage compensation
Author Ingel Kadarik (Praxis Center for Policy Studies) and Eurofound
Measure added 03 November 2022 (updated 08 January 2025)

Background information

The aim of the measure is to promote social inclusion, poverty reduction and the rural economic development by diversifying the economic activities and as a result increase employment in rural areas.

The measure has been developed on the basis of the Estonian Rural Development Plan and has entered into force via a Ministry regulation in March 2015.

Content of measure

The investment aid can be applied for annually during open application rounds. Only activities outside of the agriculture sector are supported. The activities can be related to erection, construction, installation or alteration of a building, or the purchase and installation of machinery, equipment or other necessary equipment, or the purchase of a travelling shop or its equipment.

Support can be applied for by micro-enterprise farmers, micro-enterprises engaged in non-agricultural entrepreneurship, public sector farmers and agricultural museums.

The size of the support is at least 15% of the eligible cost and:

  • Up to 40% of the eligible cost for a microenterprise engaged in non-agricultural activities.
  • Up to 50% for the farmer.
  • Up to 100% for public sector farmers and agricultural museums.

The maximum amount of support per applicant is €200,000, and €5 million for public sector farmers.

Use of measure

In the application round of September 2022, a total of 290 applications were submitted, of which 208 were from microenterprises engaged in non-agricultural activities and 82 from farmers. Altogether €23,9 million was applied for. The total budget was €19,2 million.

In 2021, a total of 504 applications in the amount of €31.2 million were submitted. The budget was €14 million. 202 applications were approved in the total sum of €13 million.

From August 2022 to September 2023, 303 applications were submitted for €20.5million, while the budget was €14million. As of December 2023, applications were approved in the total sum of €10million.

Target groups

Workers Businesses Citizens
Does not apply to workers Sector specific set of companies
One person or microenterprises
Does not apply to citizens

Actors and funding

Actors Funding
National government
European Funds
National funds

Social partners

Social partners' role in designing the measure and form of involvement:

Trade unions Employers' organisations
Role Unknown Unknown
Form Not applicable Not applicable

Social partners' role in the implementation, monitoring and assessment phase:

  • Unknown
  • Main level of involvement: N/A

Involvement

Unknown

Views and reactions

Unknown

Sectors and occupations

    • Economic area Sector (NACE level 2)
      C - Manufacturing C13 Manufacture of textiles
      C14 Manufacture of wearing apparel
      C15 Manufacture of leather and related products
      C16 Manufacture of wood and of products of wood and cork, except furniture; manufacture of articles of straw and plaiting materials
      C17 Manufacture of paper and paper products
      C18 Printing and reproduction of recorded media
      C19 Manufacture of coke and refined petroleum products
      C20 Manufacture of chemicals and chemical products
      C21 Manufacture of basic pharmaceutical products and pharmaceutical preparations
      C22 Manufacture of rubber and plastic products
      C23 Manufacture of other non-metallic mineral products
      C24 Manufacture of basic metals
      C25 Manufacture of fabricated metal products, except machinery and equipment
      C26 Manufacture of computer, electronic and optical products
      C27 Manufacture of electrical equipment
      C28 Manufacture of machinery and equipment n.e.c.
      C29 Manufacture of motor vehicles, trailers and semi-trailers
      C30 Manufacture of other transport equipment
      C31 Manufacture of furniture
      C32 Other manufacturing

This case is not occupation-specific.

Sources

  • 20 March 2015: Maapiirkonnas majandustegevuse mitmekesistamise investeeringutoetus 2022 (Investment aid for diversifying rural economy 2022) (www.pria.ee)
  • 21 June 2023: Investeeringutoetuse andmise ja kasutamise tingimused (Conditions for the support measure) (www.riigiteataja.ee)
  • 01 December 2023: Lõppenud voorude tulemused - detsember 2023 (Results of application rounds as of December 2023) (www.pria.ee)

Citation

Eurofound (2022), Support for the diversification of economic activities in rural areas, measure EE-2015-12/2972 (measures in Estonia), EU PolicyWatch, Dublin, https://static.eurofound.europa.eu/covid19db/cases/EE-2015-12_2972.html

Share

Eurofound publications based on EU PolicyWatch

30 January 2023

 

Measures to lessen the impact of the inflation and energy crisis on citizens

Governments across the EU continue to implement policies to support citizens and businesses in the face of rising food and energy prices caused by the COVID-19 crisis and intensified by the war in Ukraine. This article summarises the policy responses as reported in Eurofound's EU PolicyWatch database from January to September 2022.

Article

12 September 2022

 

First responses to cushion the impact of inflation on citizens

Although the worldwide pandemic situation had already disrupted supply chains and triggered increases in energy and food prices in 2021, the situation deteriorated in 2022 with the Russian invasion of Ukraine.

Article

12 September 2022

 

Policies to support EU companies affected by the war in Ukraine

This article summarises the first policy responses that governments across the EU have started to implement to support companies affected by the rising prices, and those with commercial ties to Ukraine, Russia or Belarus.

Article

5 July 2022

 

Policies to support refugees from Ukraine

This article summarises the first policy responses of EU Member States, including those of the social partners and other civil society actors, enabling refugees to exercise their rights under the Temporary Protection Directive.

Article

Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process.