It approved a temporary state aid framework that allows member states to support the most exposed sectors of the economy, agriculture, fisheries, transport and industry.
The temporary state aid framework will be valid until December 31, 2026, while based on developments in the Middle East and the general situation, the Commission will review the content, scope and duration of its application.
As the Commission emphasizes, support can take various forms. This includes aid based on actual consumption to cover part of price increases in fuel or fertiliser, as well as a simplified approach for small amounts of aid.
What does the framework specifically provide for?
In particular, the framework provides for agriculture, fisheries, land transport and intra-EU short sea shipping that Member States will be able to reimburse up to 70% of the additional costs due to increases in fuel and fertilizer prices caused by the crisis. The price increase will be determined by each Member State by comparing the current market price with a historical reference price.
For these sectors, a simplified option makes it easier for beneficiaries to receive aid, allowing it to be calculated based on factors such as business size or consumption estimates. In this case, each beneficiary can receive up to 50,000 euros.
For energy-intensive industries, the aid intensity for electricity costs can be increased from 50% to 70%, covering up to 50% of total consumption. No additional decarbonisation commitments are required.
These measures should be notified to the Commission, which will rapidly approve them. The Commission is also prepared to consider on a case-by-case basis temporary measures which may include fuel cost subsidies for electricity generation from natural gas, with the aim of reducing the overall cost of electricity.
The war costs 500 million euros a day
Europe is losing almost 500 million euros a day as conflict in the Middle East drives up the cost of fossil fuels, European Commission President Ursula von der Leyen said. At the same time, tensions in the Persian Gulf continue to roil global energy markets.
As she pointed out speaking to the European Parliament in Strasbourg, within just 60 days of conflict the cost of European fossil fuel imports has increased by more than 27 billion euros, without any increase in the amount of energy imported.
