IP/09/864 Brussels, 3 June 2009 Commission authorises aid scheme for forests in south-western France damaged by storm Klaus The European Commission today approved an aid scheme notified by France after storm Klaus, which crossed the south-west of the country on 24 January 2009 and devastated forests. The compensation scheme provides for a total budget of approximately €800 million. The scheme authorised provides for several measures to be implemented simultaneously, including: aid to reopen forest roads and tracks (€6 million), aid to move timber affected by the storm (€364 million), aid to strengthen the personnel resources of the sector's promotional bodies (€6 million) and aid to clean up and restore the damaged forests (€415 million). The aid will be provided in the form of direct grants, loans with interest-rate subsidies, guarantees and subsidised services. Firstly, the Commission established that storm Klaus – in view of its magnitude and devastating force – could be regarded as a natural disaster within the meaning of the state aid rules contained in the EC Treaty (Article 87(2)(b)), thereby enabling a derogation from the general principle of banning state aid. Secondly, the Commission examined the planned measures' compatibility with the common market. In the light of the information supplied, the Commission concluded that some measures complied with the conditions contained in the Community guidelines for state aid in the agriculture and forestry sector for 2007 to 2013. The other measures, intended to repair the damage suffered by forest owners, qualified for the derogation provided for by the state aid rules contained in the EC Treaty. For practical reasons justified by the specific nature of the timber sector, some of the aid will be paid to other economic operators. The Commission regarded this aid as compatible with the state aid rules contained in the EC Treaty because the aid is designed to achieve Community-interest objectives and does not affect the conditions of trade to an extent contrary to the common interest. Background The south-western regions of France (Aquitaine, Midi-Pyrénées and LanguedocRoussillon) were badly affected when storm Klaus hit on 24 January 2009. This was an unusually violent climatic event which was declared a 'natural catastrophe' by joint ministerial decree. Current damage estimates for the three regions are based on over 42 million m³ of timber and around 700 000 ha of land affected.