Brussels has so for requested additional information on three occasions regarding the support paid by the Hungarian Government to agricultural businesses affected by the red mud disaster. The latest queries arrived in early March.

The Ministry of Rural Development plans to provide more than one billion HUF in support to the 70-90 agricultural production and fish-farming businesses that suffered damages as a result of the red mud disaster, based on preliminary damage assessments. In view of the fact that Hungary is unable to begin payment of such support to agricultural businesses until Brussels has approved the payments, the Ministry informed the Commission promptly on August 8, 2011.

Immediately following the disaster, the Ministry of Rural Development paid out 350 million HUF in emergency aid to the agricultural producers and food industry businesses affected. After the true extent of the damage had been assessed, it soon became apparent that the damages incurred by farmers was much higher than this initial sum, and so the Ministry decided to make further payments, of which it duly informed Brussels.

The European Union has two months in which to decide on the approval of the payments, or to request additional information. So far, the Commission has asked for additional data on three occasions, keeping to the allotted deadline. These questions primarily concern details on Hungarian legislation and methods used to calculate support payments. Hungary has provided Brussels with its replies to these queries well in advance of the prescribed deadlines.

The Ministry of Rural Development hopes that now that these questions of a technical nature have been promptly replied to, the decree approving these support payments will arrive from Brussels shortly, and farmers who have suffered damages will soon receive the support they require.

(Press Office of the Ministry of Rural Development)