The European Commission approved in August 2010 an aid scheme that allows to grant compensation for the damage caused in Poland by the floods of May and June 2010. The measure is in line with EU state aid rules and is available only to cover the material damages effectively caused.

In May and June 2010 Poland was hit by heavy rain, which caused floods and landslides in 14 out of 16 regions, and important damages to many individuals as well as companies. Following these floods, Polish authorities put in place an aid scheme in order to compensate such damages to all type of companies.

The European Commission has examined the facts and concluded that in view of their extent, the floods and landslides should indeed be classified as a natural disaster, and therefore Polish aid would be in line with Article 107 of the Treaty of the Functioning of the European Union, that allows aid to make good the damage caused by this kind of situations.

However, the measures already examined by the Commission do not cover aid granted to those companies active in agricultural production and the part of the forestry sector covered by the EU Guidelines on state aid in the Agriculture and Forestry Sector 2007 to 2013. Polish agricultural sector has been one of the most severely affected by a harsh winter between all member states which, in general terms, seems to maintaining the average crop forecast for year 2010.

The part of the Polish scheme concerning those companies dedicated to agriculture activities or forestry sector is being examined by the Commission under the special rules governing the agricultural and forestry sectors and will be the object of a separate decision.