(ANSAmed) - BRUSSELS, JANUARY 26 - Aid allocated by Greece to
the cereal sector in 2008 is against EU rules, according to the
European Commission, which has ruled today against the 150
million euros in loans given by unions to farming cooperatives
with state guarantees, as well as subsidies for interest matured
as part of the loans. The aid was aimed at providing financial
support to cereal producers, following over-production in 2008
and the subsequent fall in prices.
The European Commission opened an investigation into the
issue at the end of 2010, after a preliminary inquiry had raised
doubts over the conformity of the measures with EU law. The
formal investigation then established the incompatibility of the
aid with the European internal market, with Greece as a result
now forced to recover the illegally allocated money from the
beneficiaries. (ANSAmed).
