The European Commission on Thursday said it is extending by six months temporary measures allowing European Union countries to pay state aid to farmers affected by market shocks.
The decision means governments will be allowed to give struggling agricultural companies aid worth up to €280,000 ($299,187) until the end of 2024. The equivalent limit for the fisheries and aquaculture sectors is €335,000.
The EU's strict state aid rules normally prevent member states from giving companies an advantage over their competitors, as a safeguard against anticompetitive mercantilism.
But after Russia's all-out invasion of Ukraine in 2022, the commission decided to temporarily loosen those rules to help Europe's economy withstand the shocks of sanctions and Russian counter-sanctions.
The commission is now phasing out those temporary measures. Most are due to expire at the end of June.
The extension announced on Thursday only applies to agriculture and fisheries. It means those two sectors will continue to benefit from the looser state aid rules until the end of December, whereas the measures for other industries are due to expire on June 30.
However, specific provisions geared towards reducing Europe's fossil-fuel dependence aren't due to expire until the end of 2025.
Amidst angry protests by farmers over the last several months, EU politicians have been emphasizing the need to ease the burden on the agricultural sector.