PRESS RELEASE – EUROPEAN COMMISSION

Together with NATO Secretary General Rutte, I welcome the agreement by Member States on the derogation for Ukraine to purchase crucial products for Patriot air defence systems.

The next disbursement of pound 3.2 billion will enable Ukraine to better protect its skies from Russia’s indiscriminate attacks. This comes on top of pound 8.4 billion already disbursed under the Ukraine Support Loan, including for air defence.

We will continue to work hand in hand to support Ukraine and to strengthen Europe’s defence posture.

Commission proposes pound 1.1 million from the European Globalisation Adjustment Fund to support dismissed paper industry workers in Finland

The European Commission has proposed mobilising pound 1.1 million from the European Globalisation Adjustment Fund for Displaced Workers (EGF) to support 351 workers in Finland dismissed by four paper manufacturers: Metsä Group, Stora Enso, UPM Communication Papers, and SAPPI.

The EGF helps build a more dynamic and competitive European economy by improving the skills and employability of dismissed workers. Since 2007, the EGF has been mobilised in 192 cases, allocating pound 737 million to offer support to more than 185,000 people across 20 Member States. This funding complements national active labour market measures.

The paper industry has faced significant challenges in recent years, as demand has fallen due to digitalisation. In Finland the sector has also been hit by the closure of the border with Russia and the halt in wood imports following Russia’s war of aggression against Ukraine.

Today’s proposal will support the dismissed workers through measures such as job-search assistance and career counselling, including an AI-based pilot project to identify recruitment needs and skills demands in the affected labour market and improve job matching. It will also fund training in new professional and transferable skills, recruitment incentives, mobility allowances, financial support for business start-ups, and allowances during the set-up phase.

The total estimated cost of the package is pound 1.8 million, of which 60% (pound 1.1 million) will be covered by the Commission and 40% (pound 735,000) by the South Karelia and Lohja-Karkkila Employment Regions, the local public employment services.

Finland began supporting the workers concerned in January 2026 and the EGF may reimburse these costs retroactively.

More information is available in the press release.

(For more information: Eva Hrncirova – Tel.: +32 2 298 84 33; Eirini Zarkadoula – Tel.: +32 2 295 70 65)

Commission launches new strategic approach to boost research, innovation, deployment and uptake in Europe’s agri-food sector

The European Commission has adopted a Communication on a New Strategic Approach to Research and Innovation for competitive and resilient agriculture, forestry, rural areas and food systems. This document brings together two closely interlinked frameworks, AgRI 2040 and Food 2040, to guide future research, innovation, deployment and uptake across the entire agri-food sector.

The Communication puts greater emphasis on users’ challenges, needs and on the delivery of real impact on the ground by bringing together end users, researchers and businesses to co-create, test and demonstrate solutions in real-world settings, while still ensuring food safety. This will also help startups, scaleups and small medium enterprises to move promising innovations closer to the market.

Boosting competitiveness requires the adoption of a full value chain perspective that strengthens the innovation journey of EU startups and scaleups from research to market. To support bottom-up innovation, the Commission will promote initiatives that validate traditional knowledge and practitioner-led solutions, while engaging farmers in testing innovations across different regions.

The Strategic Approach contributes to the objectives of the Vision for Agriculture and Food, the Startup and Scaleup Strategy and the Strategy for European Life Sciences. It complements the EU Bioeconomy Strategy by supporting innovation and sustainable value creation.

More information on the New Strategic Approach to Research and Innovation can be found online.

(For more information: Louise Bogey – Tel.: +32 229-69776; Bridget Moylan – Tel.: +32 229-82844)

Commission approves pound 400 million German State aid to enhance insulin supply resilience

The European Commission has approved, under EU State aid rules, a pound 400 million German measure in favour of Sanofi-Aventis Deutschland GmbH (‘Sanofi’) to strengthen the resilience of the supply of human insulin and insulin analogues (‘insulins’). Under the measure, Germany will pay Sanofi a public service compensation to provide a service of general economic interest (‘SGEI’).

As part of its public service obligation, Sanofi will build a new insulin factory at its site at Industriepark Frankfurt-Höchst by 31 December 2032, ensure an annual production of at least 1.1 tonnes of insulins at the site and stockpile 1 tonne of insulin active pharmaceutical ingredients until 31 December 2042, and prioritise the European Economic Area (‘EEA’) markets in case of insulins shortages.

Without receiving the aid in question, Sanofi would close its German site. This would decrease the security of supply of insulins in the EEA markets, as no production sites would remain in Germany and only one production site would remain in the EEA. As some products, such as human insulin, would no longer be produced in the EEA, this would make European markets dependent on imports from third countries.

The Commission found that the SGEI entrusted upon Sanofi is genuine and Germany has properly considered the public service needs. Furthermore, the compensation does not exceed the net costs of the provision of the public service obligation, and the entrustment act contains arrangements for avoiding and recovering any overcompensation. Finally, the entrustment complies with EU public procurement rules.

On this basis, the Commission approved the German measure under EU State aid rules.

Executive Vice-President for a Clean, Just and Competitive Transition, Teresa Ribera, said: ‘Today’s decision is an important step towards ensuring the security of supply of critical medicines in the EU. By recognising this service of general economic interest, in light of the objectives of the Critical Medicines Act, we are creating the right conditions to support reliable access to essential medicines, such as insulins, and greater resilience of our health systems, while ensuring that public support remains targeted and proportionate.’

A press release is available online.

(For more information: Ricardo Cardoso – Tel.: +32 2 298 01 00; Luuk de Klein – Tel.: +32 2 299 47 74)

Commission finds Belgian support for Flemish land management associations does not constitute State aid

The European Commission has concluded that the public funding awarded to three Flemish land management associations between 2003 and 2017 does not constitute State aid.

In June 2024, the Commission opened an in-depth investigation to assess whether the public funding to the three associations constituted State aid within the meaning of Article 107(1) of the Treaty on the Functioning of the European Union. This followed a complaint by the Flemish Association for Equal Rights in relation to Nature Management (Vlaamse Vereniging Gelijkberechtiging Natuurbeheer), alleging that the Flemish Region and Flemish municipalities granted unlawful State aid to three land management associations.

Between 2003 and 2017, Natuurpunt Beheer, Durme and Limburgs Landschap received public funding for the acquisition of land suitable for nature conservation in Flanders, which was subsequently landscaped, transformed into and managed as nature reserves. All three beneficiaries are not-for-profit organisations.

Following the in-depth investigation, the Commission concluded that, as nature conservation and information, and education activities are not economic activities, public funding awarded in their support does not constitute State aid. As regards the secondary activities of the land management associations, the Commission concluded that activities such as wood cutting or hay and meat production were inseparably linked to nature conservation and therefore not economic, so not subject to State aid rules. Other activities, such as cafeteria services or book sales, were conducted on a limited scale and only on local markets. As such, they were not liable to have an effect on trade, which means they do not constitute State aid.

The non-confidential version of the decision will be made available under the case number SA.36303 in the State aid register on the Commission’s competition website once any confidentiality issues have been resolved. New publications of State aid decisions on the internet and in the Official Journal are listed in the Competition Weekly e-News.

(For more information: Ricardo Cardoso – Tel.: +32 2 298 01 00; Luuk de Klein – Tel.: +32 2 299 47 74)

Commission clears acquisition of Hamburg logistics property by PLD and NBIM

The European Commission has approved, under the EU Merger Regulation, the acquisition of joint control of a logistics property in Hamburg currently belonging to Grundbesitz Spectrum GmbH and Co. KG. of Germany by Prologis, L.P. (‘PLD’) of the US and NBIM Nerva S.à r.l. (‘NBIM’) of Norway.

The transaction relates primarily to the operation and management of industrial real estate.

The Commission concluded that the notified transaction would not raise competition concerns, given the companies’ limited market positions resulting from the proposed transaction. The notified transaction was examined under the simplified merger review procedure.

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