EU eyes grants, subsidies to offset Iran war impact on farming, transport

The European Commission plans to propose temporary measures such as grants, subsidies, tax breaks and loans to mitigate the impact of the Iran war on agriculture, fisheries and transport, a draft Commission document seen by Reuters showed.



The Commission is currently consulting member states before it adopts a final version by the end of April. Once adopted, these aid measures will be granted until the end of the year and will cover a portion of up to 50% of extra fuel and fertilizer costs arising from the Iran crisis.



The temporary measures will complement existing state aid rules and "allow member states to address the specific unexpected, sudden, and significant cost increases,” the draft said. This aid is directed specifically toward businesses in the agricultural, fishery, road transport, and intra-EU short-sea shipping sectors.