After the plea for help from the French umbrella organisation Vignerons Coopérateurs, the government has reacted with swift aid measures to relieve the sector during the current crisis. According to Vitisphere, the Agriculture Minister Marc Fesneau promised €160m support for distillation in 2023. Moreover, he indicated the possibility of help for structural grubbing-up as well as the extension of the repayment period for state-guaranteed loans.
€80m for first measures, more to follow
Distillation is to be supported with €40m in national funds and another €40m from the European Agricultural Guarantee Fund (EAGF). A second round could start in October with a similar amount of financial support. "The relevant applications will be submitted to the European Commission immediately," the ministry said.
To respond to the liquidity difficulties of many businesses, the government has also extended the repayment deadlines for loans granted by the state. This is aid that was made available to many businesses under the Corona aid measures.
Strategies for the future
The industry also needs to make the necessary adaptations to climate change and the changing demands of the domestic and export markets. The government aims to support the industry in developing a strategic plan for the future.
The ministry's goal is to assist France's agriculture towards greater resilience. In order to provide better protection against climatic risks, two new support packages, each worth € 20m, are to be launched in the coming days. A core component of these measures is a crop insurance system, which will come into force at the beginning of 2023. One of the two support packages will therefore be reserved exclusively for this. ITP