The relaxation of the European State aid framework, which the European Commission has put out to consultation in response to the surge in energy prices caused by the war in the Middle East, is intended to permit Member States to provide targeted, temporary aid (from March to the end of December 2026) to the sectors of activity - agriculture and fisheries, land and maritime transport, and gas-fired electricity generation - most affected by the rise in fuel prices and the disruption of supply chains (see EUROPE 13847/3).
In its proposal to the Member States, of which Agence Europe has received a copy, the EU institution justifies the need to go beyond the rules on State aid already in place to support the sectors concerned.
For agriculture, the prices of certain fertilisers, in March, were 58% higher than the average prices seen in 2024. In the transport sector, the increase in companies’ operating costs caused by the rise in fuel prices far exceeds the margins enjoyed by operators. There is therefore a risk that companies will cease activities that are no longer profitable.
CISAF. With a view to maintaining public financial incentives for decarbonising the economy while taking account of increased energy prices, the Commission is also proposing to make the ‘CISAF’ framework stimulating investment in clean technologies more flexible until the end of 2030 (see EUROPE 13667/26), by increasing the aid intensity (coverage of up to 70% of the yearly average wholesale market price) without modifying the contributions required in terms of decarbonisation of manufacturing processes.
“Accelerating the clean transition will reduce emissions, reduce dependency on imported fossil fuels, and protect against price hikes caused by external factors”, says the EU institution.
In addition, Member States will be able to provide direct assistance to companies experiencing cash flow difficulties as a result of rising energy prices. Aid may take the form of direct grants, tax advantages, public guarantees and/or preferential loans via credit institutions. And they could, depending on the conditions, cover between 50 and 100% of the additional costs arising from soaring prices directly linked to the war in the Middle East.
Where support is based on estimated fuel consumption, a ceiling of €50,000 per company is envisaged in the agriculture, fisheries and land transport sectors.
The Commission will assess the extent to which the schemes notified by the Member States will facilitate the maintenance of economic activities (positive condition) without the aid adversely affecting market conditions to an extent contrary to the common interest (negative condition).
The new rules could be in place by the end of April. They will supplement a package of measures aimed directly at the energy sector and currently being prepared for the European summit on 23 and 24 April in Cyprus (see other news).
See the State aid framework submitted for consultation: https://aeur.eu/f/lk8 (Original version in French by Mathieu Bion with Solenn Paulic)