Econostrum | Economic News in the Mediterranean

French farms, fish farms and Air France employees to receive €420m in aid

Written by Frédéric Dubessy on Thursday, May 12th 2022 à 15:05 | Read 250 times

The European Commission has approved €400 million in state aid to support French farms and fish farms and is proposing to provide €17.7 million in aid to Air France employees made redundant by the pandemic.

Fish farms to benefit from state aid (photo: BL)
Fish farms to benefit from state aid (photo: BL)
FRANCE. On Tuesday 10 May 2022, the European Commission approved a French subsidy scheme for farm and fish farms. It also proposes to support 1,580 former Air France employees.

Its first decision is based on its temporary crisis framework for state aid adopted on 23 March 2022. It concerns French support to farms and fish farms financially affected by the conflict between Ukraine and Russia. The subsidies, paid by the French State and totalling €400 million, will cover part of the increased feed costs of these farms.

The Commission justifies its favourable position by indicating that this support will not exceed €35,000 per beneficiary and will be granted by 31 December 2022 at the latest. Two conditions are included in the text setting out the exceptions to the common rules in the event of serious disturbance.

21 million for 1,580 former Air France employees

At the same time, and at the request of Paris, the European Commission is proposing to support 1,580 employees made redundant by Air France due to the effects of the Covid-19 pandemic (drop in the number of passengers and flights). It is releasing the sum of €17.7 million from the European Globalisation Adjustment Fund (EGF) for redundant workers, which will contribute to a total budget of €21 million for this operation. The remaining 15% will be provided by the national airline.

"The funding will help those concerned to find a new job through appropriate counselling and guidance services, to develop new skills or to set up their own business," says a Commission press release. In the latter case, interested ex-employees will be eligible for a start-up grant of up to €15 000. The support measures also include recruitment subsidies, salary differentials and rapid/immediate reclassification allowances for employees.

The Ile-de-France region was the most affected by the Air France redundancies. Former employees working in this region represent 57% of the total.

This assistance started in February 2021, shortly after the first redundancies. If necessary, the EGF will cover the costs retroactively, as soon as the European Commission's proposal is approved by the European Parliament and the European Council.

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