State aid mechanism for sugar and other products

A special temporary state aid scheme shall support the purchase of these products on the basis of established traditional trade and consumption habits. The subsidy will be paid to processors and recognised retailers but the mechanism must guarantee...

A special temporary state aid scheme shall support the purchase of these products on the basis of established traditional trade and consumption habits. The subsidy will be paid to processors and recognised retailers but the mechanism must guarantee that the support is effectively passed on to consumers. The maximum level of aids shall be calculated on the basis of the price differential between the EU prices (including transport) and the world market prices. It shall also take into account the level of the export refunds. The aid will only be given as long as a price difference exists. The aid shall be digressive as follows: First year 100 per cent, second year 95 per cent, third year 90 per cent, fourth to seventh year 18 per cent reduction each year. The aid shall be partly compensated by the EU.

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