The EU has circulated a proposal to extend the relaxation of state aid controls introduced on 19 March.

State aid rules are the mechanism whereby the EU sets standard government support to industries and specific sectors. This ensures factories receive the same levels of state support in one member as another and prevents governments promoting national champions such as airlines.

For farmers it is of limited interest. The national Government could already grant exceptional support to the limit of €25,000 per farm business over a three-year period. The relaxation announced on 19 March extended this threshold to €100,000 per farm business.

This would allow the Irish Government provide relief to farmers in exceptional circumstances, but State finances are already under pressure due to the cost of trying to control COVID-19 and the loss of revenue due to the lockdown.