The European Commission has approved a €70 million state aid regime proposed by the Cypriot Government. This program aims to compensate the agricultural sector for damages caused by adverse climatic phenomena until 2030.

Specifically, the Cypriot program will support farmers who suffer losses in plant and animal production, property, stored products, or equipment due to adverse weather events leading to natural disasters. These include storms, frost, hail, snowfall, heavy or unseasonal rainfall, high temperatures, temperature fluctuations, drought, extreme atmospheric conditions, and atmospheric dust.

The support will be provided through direct subsidies, not exceeding €150,000 annually per beneficiary (and €500,000 over a five-year period). This regime will be in effect until December 31, 2030.

The Commission evaluated the Cypriot support program based on EU state aid rules, which allow member states to support certain economic activities under specific conditions, particularly the 2022 guidelines on state aid in the agricultural, forestry sectors, and rural areas.

The Commission deemed the program appropriate according to legislative criteria, as it is limited to the minimum necessary measure and will have a limited impact on competition and trade among member states.