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COVID-19 EU PolicyWatch

Database of national-level responses

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

Factsheet for case SI-2020-11/484 Updated – measures in Slovenia

Subsidies for agriculture, forestry and fisheries and mandatory local purchases

Pomoči za kmetijstvo, gozdarstvo in ribištv

Country Slovenia , applies nationwide
Time period Temporary, 13 March 2020 – 31 August 2020
Type Legislations or other statutory regulations
Category Supporting businesses to stay afloat
– Direct subsidies (full or partial)
Author Maja Breznik (University of Ljubljana) and Eurofound
Case created 11 April 2020 (updated 01 December 2020)

Background information

The ‘Act Determining the Intervention Measures to Contain the COVID-19 Epidemic and Mitigate its Consequences for Citizens and the Economy (ZIUZEOP)’ includes a set of subsidies for agricultural, forestry enterprises, and fisheries. Farmers who became sick with COVID-19 can ask for financial help for the time while they are incapable of working. Farmers have also the right to ask for financial compensation for the loss of income during the epidemic, while fishermen may claim for 40% subsidy for berths in the port. Another measure obliges public institutions to buy local food.

Content of measure

Farmers and fishermen who became sick with COVID-19 may apply for financial support if they are enrolled in the register of agricultural businesses. Financial support should be equal to real damage, but cannot exceed 80% of the minimum wage.

Emergency regulation endows agricultural businesses with the right to financial compensation for the loss of income during the epidemic. The loss of income means the inability of selling supply or lower scale of production if it causes a decrease in revenue by 20%. Agricultural businesses may claim for financial support for the time of epidemic as well as for three succeeding months. The calculation of compensation will be based on a flat rate taking into consideration the number of hectares or livestock units or average catch in the last three years. This support is not compatible with another support under emergency regulation, the Monthly basic income , as one rules out the other. The law obliges public institutions to buy at least 50% of agricultural products from local growers if the purchase value does not exceed a determined sum when the public procurement has to appear in the Official Journal of the European Union. Local food means that it is produced and processed locally. The obligatory purchase of local food will be valid until the end of 2020.

Updates

The following updates to this measure have been made after it came into effect.

27 November 2020

The sixth COVID-19 law (ZIUOPDVE), adopted by the Parliament on 25 November 2020, gives subsidies to farmers who endured at least 30% lower income. On the state land, agricultural rent is 20% discounted in the first half of the year 2021 and free of charge for re-cultivation of overgrown areas.

18 October 2020

The fifth emergency act (ZZUOOP) extends support for farmers and fishermen who became sick with Covid-19. They may claim for financial support if they are enrolled in the register of agricultural businesses. Financial support should be equal to real damage, but cannot exceed 80% of the minimum wage.

The act also prolongs the obligation of public institutions to buy at least 50% of agricultural products from local growers if the purchase value does not exceed a determined sum when the public procurement has to appear in the Official Journal of the European Union.

Use of measure

The measure targets agricultural sector, enterprises as well as supplementary farm activities. Agency for Agricultural Markets and Rural Development sets out detailed rules and administers procedures.

Target groups

Workers Businesses Citizens
Does not apply to workers Applies to all businesses Does not apply to citizens

Actors and funding

Actors Funding
National government
National funds

Social partners

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

Trade unions Employers' organisations
Role Consulted Consulted
Form Any other form of consultation, institutionalised (as stable working groups or committees) or informal Any other form of consultation, institutionalised (as stable working groups or committees) or informal

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

  • Unknown
  • Main level of involvement: Sectoral or branch level

Involvement

Trade unions and employer organizations have submitted proposals to the law. The Chamber of Agriculture and Forestry of Slovenia (KGZS) - the umbrella interest organisation of natural and legal persons in the Republic of Slovenia engaged in agriculture, forestry and fishery - was satisfied with the law, saying that its proposals were taken into account to a great extent

Views and reactions

Trade unions and employer organizations have submitted proposals to the law. The Chamber of Agriculture and Forestry of Slovenia (KGZS) - the umbrella interest organisation of natural and legal persons in the Republic of Slovenia engaged in agriculture, forestry and fishery - was satisfied with the law, saying that its proposals were taken into account to a great extent.

Sectors and occupations

    • Economic area Sector (NACE level 2)
      A - Agriculture, Forestry And Fishing A1 Crop and animal production, hunting and related service activities
      A2 Forestry and logging
      A3 Fishing and aquaculture

This case is not occupation-specific.

Sources

  • 30 March 2020: Chamber of Agriculture and Forestry of Slovenia (KGZS), Predlog zakona je primeren tudi za kmetijstv (www.kgzs.si)
  • 10 April 2020: Zakon o interventnih ukrepih za zajezitev epidemije COVID-19 in omilitev njenih posledic za državljane in gospodarstvo (ZIUZEOP) [Act Determining the Intervention Measures to Contain the COVID-19 Epidemic and Mitigate its Consequences for Citizens and the Economy (www.pisrs.si)
  • 15 October 2020: Act Determining the Intervention Measures to Contain the COVID-19 Epidemic and Mitigate its Consequences (Zakon o začasnih ukrepih za omilitev in odpravo posledic covid-19, ZZUOOP)

Citation

Eurofound (2020), Subsidies for agriculture, forestry and fisheries and mandatory local purchases, case SI-2020-11/484 (measures in Slovenia), COVID-19 EU PolicyWatch, Dublin, http://eurofound.link/covid19eupolicywatch

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