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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 GR-2022-1/2298 – measures in Greece

Financial aid for farmers

Enishisi agroton (Ενίσχυση αγροτών)

Country Greece , applies nationwide
Time period Temporary, 01 January 2022 – 31 December 2022
Context COVID-19, War in Ukraine
Type Other initiatives or policies
Category Supporting businesses to stay afloat
– Direct subsidies (full or partial) or damage compensation
Author Penny Georgiadou (INE GSEE)
Measure added 17 May 2022 (updated 20 June 2022)

Background information

The government, in March 2022, introduced a series of support measures to address the impact of price rises due to the continuing health crisis and the war in Ukraine.

In this context, Law 4916 (articles 50 and 51) of 28 March 2022 and law 4919 (article 61) of 7 April 2022 introduced various financial support measures for farmers and stockbreeders, aiming to support them to cope with the price increases on feed and fertilisers as well as the price increase on fuel and energy.

Law 4919 (article 61) and Ministerial Decision No. 600/102813 (of 24 April 2022) define financial measures to support livestock farmers.

Content of measure

The financial measures to support farmers include the following:

  • Determination of a zero rate payment of the special consuming tax for diesel of engines used exclusively in agriculture, for the whole year 2022.
  • Setting a VAT rate of 6%, instead of the current 13% for fertilisers.

The financial measures to support livestock farmers are the following:

  • Subsidisation of livestock farmers for the increased cost of animal feed. The amount of the aid is calculated at a rate of 2% of the turnover for the year 2021. The total amount of the aid for each beneficiary (natural or legal person) cannot exceed €35,000 including any other subsidies. The aid shall be paid by December 2022.

Also, there are in force by previous legislation the following measures:

  • the permanent reduction of the VAT on animal feed from 13% to 6% (established from October 2021).
  • the coverage of 80% of the adjustment clause in the electricity tariffs for agricultural use, from August to December 2021.

The total cost of these interventions is estimated around €200 million.

Use of measure

There are no data on the number of beneficiaries.

Target groups

Workers Businesses Citizens
Does not apply to workers Sector specific set of companies
Does not apply to citizens

Actors and funding

Actors Funding
National government
EU (Council, EC, EP)
European Funds
National funds

Social partners

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

Trade unions Employers' organisations
Role No involvement No involvement
Form Not applicable Not applicable

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

  • No involvement
  • Main level of involvement: N/A

Involvement

There was no involvement of social partners.

Views and reactions

There were no social partner's reactions on the measure detected.

Sectors and occupations

    • Economic area Sector (NACE level 2)
      A - Agriculture, Forestry And Fishing A1 Crop and animal production, hunting and related service activities

This case is not occupation-specific.

Sources

  • 04 February 2022: Press Release of the Minister of Rural development: New financial measures For farmers (www.minagric.gr)
  • 11 February 2022: Farmers: The ministerial decision for the return of the electricity adjustment clause was published (www.naftemporiki.gr)
  • 17 March 2022: Press Release: Statement by the Minister of Finance, specification of the support measures to address the impact of price rises on citizens (www.minfin.gr)
  • 23 March 2022: Press Release. Speech by the Minister of Finance at the Plenum of the Parliament (www.minfin.gr)
  • 28 March 2022: Law 4916/2022 at 28th March 202 (www.e-nomothesia.gr)
  • 07 April 2022: Law 4919/2022 at 7th April 202 (www.e-nomothesia.gr)
  • 14 April 2022: Ministerial Decision no 600/102813 at 14th April 2022 Financial aid to livestock farmers according article 61 of law 4919/202 (www.agronews.gr)

Citation

Eurofound (2022), Financial aid for farmers, measure GR-2022-1/2298 (measures in Greece), EU PolicyWatch, Dublin, https://static.eurofound.europa.eu/covid19db/cases/GR-2022-1_2298.html

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