Competition-policy.ec.europa.eu/state-aid/temporary-crisis-and-transition-framework_en”>amendment to State aid Temporary crisis and transition framework to extend by six months a limited number of sections of the Framework aimed at providing a response to the crisis following Russia’s aggression against Ukraine and the unprecedented rise in energy prices.
In particular, taking into account the comments received from Member States, today’s amendment postpones the phasing out of provisions allowing Member States to grant limited amounts of aid (section 2.1 of the Framework) and aid intended to offset high energy prices (section 2.4 of the Framework). Thanks to this partial adjustment of the timetable for phasing out the temporary crisis and transition framework, Member States can maintain their support schemes to cover the next winter heating period, as a safety net in case some companies continue to operate. be affected by the economic disruption caused by Russia’s war against Ukraine. At the same time, Member States will have more time beyond the winter heating period to implement any measures they may need. This will help Member States to concretely implement the support measures.
Adjusted gradual withdrawal schedule from the temporary crisis and transition framework
Since the start of Russia’s war against Ukraine and in the context of its direct and indirect effects on the EU economy, the Temporary State Aid Crisis Framework, adopted for the first time times the March 23, 2022then modified in July And October 2022 and replaced the March 9, 2023 through the Temporary Crisis and Transition Framework, allows Member States to provide timely, targeted and proportionate support to businesses in need. The framework enabled Member States to act quickly and effectively to help businesses affected by significant economic uncertainties, disruption of trade flows and supply chains and exceptionally large and unexpected price increases, particularly of natural gas , electricity, many other inputs and raw materials. primary materials and goods. These effects taken together had caused serious disruptions in the economies of all Member States across a wide range of economic sectors.
As Russia’s war of aggression against Ukraine continues, the EU’s economic situation is showing resilience in the face of the shocks it has suffered. The situation on the energy markets, notably the average prices of gas and electricity, appears to have stabilized. While overall the risks of energy supply shortages have diminished, notably thanks to measures taken by member states to diversify energy sources, the autumn 2023 economic forecast notes that the ongoing war in Russia versus Ukraine and broader geopolitical tensions continue to present risks and remain a source of uncertainty. Despite the overall positive trend, energy markets remain vulnerable.
Today, taking into account comments received from Member States in a survey on 20 July 2023 and a consultation on November 6, 2023The Commission has adopted amendments to the provisions of the temporary crisis and transition framework allowing Member States to grant:
- Limited amounts of aid (section 2.1 of the Framework): This component will be extended by six months, until June 30, 2024. In addition, the ceilings set for the limited amounts of aid are raised to cover the winter heating period: from €250,000 to €280,000 for the agricultural sector; from €300,000 to €335,000 for the fishing and aquaculture sectors; and from 2 million euros to 2.25 million euros for all other sectors.
- Aid to compensate for high energy prices (section 2.4 of the framework): this section will also be extended by six months and will continue to apply until June 30, 2024. Under this section, States members can continue to provide support by covering part of the additional expenses. energy costs only to the extent that energy prices far exceed pre-crisis levels.
These two amendments will allow Member States, if necessary, to extend their support schemes and will ensure that businesses still affected by the crisis will not be deprived of the necessary support during the next winter heating period. At the same time, the extension will facilitate the practical implementation of the support schemes by Member States by giving them sufficient time to do so until the end of June 2024.
The changes adopted today do not affect the remaining provisions of the temporary crisis and transition framework:
- The other crisis-related sections of the framework (i.e. sections 2.2. and 2.3. on liquidity support in the form of state guarantees and subsidized loans, and section 2.7. on measures to support the reduction of electricity demand) will not be extended beyond their current expiry. date, i.e. December 31, 2023.
- The sections of the framework covering the transition to a net zero economy, necessary to further decarbonise the European economy and accelerate its independence from fossil fuels (sections 2.5, 2.6 and 2.8), are not affected by today’s amendment today and will remain available until December 31, 2025.
The Commission will continue to closely monitor developments in the economic situation and stands ready to react quickly in the event of a new crisis situation. However, the Commission does not currently plan to consult Member States again on the crisis tools of the Temporary Crisis and Transition Framework, which will phase out on 30 June 2024.
Background
State aid Temporary crisis frameworkadopted on March 23, 2022, allowed Member States to use the flexibility provided by state aid rules to support the economy in the context of Russia’s war against Ukraine. The temporary crisis framework was modified on July 20, 2022 to complete the Winter preparation package and in accordance with the REPowerEU plan goals. The temporary crisis framework was further modified on October 28, 2022 in accordance with the Regulation on emergency intervention to address high energy prices and the Regulations strengthening solidarity through better coordination of gas purchases, reliable price references and cross-border gas exchanges.
On March 9, 2023the Commission adopted the current Crisis and temporary transition framework promote support measures in key sectors for the transition to a net zero economy, in line with the Green Deal industrial plan.
The Temporary Crisis and Transition Framework, as amended, provides for the following types of assistance, which may be granted by Member States:
- Limited amounts of aid (section 2.1), in any form and granted until June 30, 2024, for companies affected by the current crisis or by subsequent sanctions and counter-sanctions up to €280,000 and €335,000 respectively in the agriculture and fishing and aquaculture sectors. , and up to 2.25 million euros in all other sectors.
- Liquidity support in the form of state guarantees and subsidized loans (sections 2.2 and 2.3). In exceptional cases and subject to strict guarantees, Member States may provide energy utilities for their trading activities with public guarantees exceeding 90% of their coverage, when provided as an unfunded financial guarantee to central counterparties or clearing members. These articles are only applicable until December 31, 2023 and have not been modified.
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