Under the proposal, the energy crop aid scheme introduced in 2004 will cover all the European Union (EU) member states. Previously eight countries were excluded.

As a result, the maximum area which can benefit from the aid will be expanded to 2 million hectares from 1.5 million at present.

In addition, the commission proposed Friday allowing the member states to grant national aid of up to 50 percent of the costs of establishing multiannual crops on areas on which an application for the energy crop aid has been made.

Eight countries, which joined the EU in 2004, are going to be allowed to continue with a separate aid scheme until 2010 instead of 2008, said the commission.

The countries affected are the Czech Republic, Estonia, Cyprus, Latvia, Lithuania, Hungary, Poland, and Slovakia.

The farming of energy crops has become economically viable as oil prices climb, said a commission spokesman Friday.