Commission approves €500 million Spanish State aid for agricultural companies facing increased fertiliser prices

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The European Commission has approved a €500 million Spanish State aid scheme to support agricultural companies facing increased fertiliser prices due to the Middle East crisis.

The scheme was approved under the Middle East Crisis Temporary State Aid Framework (METSAF) adopted by the Commission on 29 April 2026.

The Spanish Measure

Spain notified to the Commission a €500 million scheme to support companies active in primary production of agricultural products. The scheme, which will run until 31 December 2026, aims at mitigating the impact of increased fertiliser prices.

The aid will take the form of direct grants. Companies can receive €22 per hectare for dryland and €55 per hectare for irrigated land, for a maximum of 300 hectares per beneficiary. The aid will cover up to 70% of the additional fertiliser costs resulting from the Middle East crisis.

The Commission assessed this scheme under EU State aid rules, in particular Article 107(3)(c) of the Treaty on the Functioning of the EU (‘TFEU’), which enables Member States to support the development of certain economic activities subject to certain conditions, as well as Sections 1 and 2.1 of the METSAF.

The Commission found that the scheme is in line with the conditions set out in the METSAF. In particular, aid will be granted based on a scheme with a clear estimated budget, and aid will be provided to temporarily support the development of companies active in primary production of agricultural products. The Commission concluded that the scheme is necessary, appropriate and proportionate to facilitate the development of an economic activity and does not adversely affect trading conditions to an extent contrary to the common interest.

On this basis, the Commission approved the Spanish scheme under EU State aid rules.

Background

On 29 April 2026, the Commission adopted the Middle East crisis Temporary State aid Framework to enable Member States to support the EU economy in the context of the Middle East crisis. The METSAF is a targeted and temporary framework to address the effects of the crisis on some of the most exposed sectors of the economy: agriculture, fishery, transport and energy-intensive industries. The METSAF will be in place until 31 December 2026. During its period of application, the Commission will keep the content, scope and duration of the framework under review in the light of developments in the Middle East and of the general economic situation.

While the transition towards a clean economy remains the long-term solution to shield EU companies from the effects of global energy shocks, the METSAF allows Member States to act immediately to make sure that the growth of the most exposed companies is not irreparably hampered by the current crisis.

To this end, support can take various forms for companies active in the agriculture, fishery and transport sectors. This includes aid based on actual consumption to cover part of the price increases for fuel or fertilisers, and a simplified approach for small amounts of aid.

The METSAF also includes a temporary adjustment to the Clean Industrial Deal State aid Framework (CISAF) allowing for further flexibility and higher aid intensities to address electricity price spikes.

More information on the METSAF can be found online.

For more information

The non-confidential versions of today’s decision will be made available under case number SA.122723, in the State aid register on the Commission’s competition website. New publications of State aid decisions on the internet and in the Official Journal are listed in the Competition Weekly e-News.