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Image header Agence Europe
Europe Daily Bulletin No. 13037
Russian invasion of Ukraine / State aid

European Commission consults Member States on modalities for prolongation of Temporary Crisis Framework

The European Commission announced on Thursday 6 October that it has sent to Member States for consultation a draft proposal to prolong and adapt the State aid Temporary Crisis Framework adopted by the Commission on 23 March 2022 to support the economy in the context of Russia’s war against Ukraine (see EUROPE 12917/11).

The Temporary Crisis Framework was first amended on 20 July 2022 to take account of the objectives of the REPowerEU strategy to reduce the EU’s dependence on Russian hydrocarbons (see EUROPE 12997/4).

The Commission shall consult Member States on possible amendments to:

- a prolongation of the Temporary Crisis Framework;

- a proportional increase in the maximum aid ceilings provided for in the provisions on limited amounts of aid, which allow Member States to provide direct grants or other forms of aid to companies in any sector affected by the crisis, including agriculture and fisheries;

- a targeted adjustment, in view of the high market volatility, to further facilitate the access of energy companies to liquidity support to cover the financial collaterals for their trading activities;

- a simplification of the criteria for Member States to support companies affected by high energy prices, including energy intensive users, ensuring that support remains targeted and proportionate and while maintaining incentives to reduce energy demand;

- a clarification on the criteria that the Commission intends to apply for the assessment of recapitalisation support measures, in order to safeguard effective competition;

- additional measures to support the reduction of electricity demand, in line with the Commission’s proposal for emergency market intervention.

Member States now have the opportunity to comment on the Commission’s draft proposal.

The Temporary Crisis Framework allows Member States to grant limited amounts of aid to companies affected by the current crisis or affected by EU sanctions against Russia and Russian counter-sanctions, up to the increased amounts of €62,000 and €75,000 in the agriculture, fisheries and aquaculture sectors, and up to €500,000 in all other sectors. (Original version in French by Lionel Changeur)

Contents

PRAGUE SUMMIT
Russian invasion of Ukraine
EUROPEAN PARLIAMENT PLENARY
SECTORAL POLICIES
FUNDAMENTAL RIGHTS - SOCIETAL ISSUES
EXTERNAL ACTION
INSTITUTIONAL
ECONOMY - FINANCE - BUSINESS
SOCIAL AFFAIRS - EMPLOYMENT
COURT OF JUSTICE OF THE EU
COUNCIL OF EUROPE
NEWS BRIEFS