The European Commission has approved a €500 million Spanish State aid scheme to support agricultural companies facing increased fertiliser prices due to the Middle East crisis. The scheme was approved under the Middle East Crisis Temporary State Aid Framework (METSAF) adopted by the Commission on 29 April 2026.

Spain notified to the Commission a €500 million scheme to support companies active in primary production of agricultural products. The scheme, which will run until 31 December 2026, aims at mitigating the impact of increased fertiliser prices.

The aid will take the form of direct grants. Companies can receive €22 per hectare for dryland and €55 per hectare for irrigated land, for a maximum of 300 hectares per beneficiary. The aid will cover up to 70% of the additional fertiliser costs resulting from the Middle East crisis.

The Commission assessed this scheme under EU State aid rules, in particular Article 107(3)(c) of the Treaty on the Functioning of the EU ('TFEU'), which enables Member States to support the development of certain economic activities subject to certain conditions, as well as Sections 1 and 2.1 of the METSAF.

The Commission found that the scheme is in line with the conditions set out in the METSAF. In particular, aid will be granted based on a scheme with a clear estimated budget, and aid will be provided to temporarily support the development of companies active in primary production of agricultural products. The Commission concluded that the scheme is necessary, appropriate and proportionate to facilitate the development of an economic activity and does not adversely affect trading conditions to an extent contrary to the common interest. On this basis, the Commission approved the Spanish scheme under EU State aid rules.