The temporary State aid framework adopted by the European Commission has adopted is designed to support industry sectors adversely affected by the ongoing Middle East crisis – and the resulting rising cost of fuel.
The Middle East crisis Temporary State Aid Framework (METSAF) is a targeted and temporary framework to address the effects of the crisis on some of the most exposed sectors of the economy. These include agriculture, transport and energy-intensive industries – including fisheries.
The METSAF remains in place until 31st December 2026. While the transition towards a clean economy remains the long-term solution to shield EU companies from the effects of global energy shocks, the METSAF allows Member States to act immediately to make sure that the growth of the most exposed companies is not irreparably hampered by the current crisis.
‘Achieving a clean economy is what will shield us from the energy crises of the future. The energy transition remains the most effective strategy for Europe’s autonomy, growth and resilience,’ said Teresa Ribera, executive VP for Clean, Just and Competitive Transition.
‘Nevertheless, the recent spikes in energy prices require an immediate response. The METSAF allows for easily applicable solutions that will sustain the continuous development of core EU sectors such as agriculture, fishery and transport, by cushioning the effects of the crisis.’
Support can take various forms for companies active in the agriculture, fishery and transport sectors. This includes aid based on actual consumption to cover part of the price increases for fuel or fertilisers, and a simplified approach for small amounts of aid.
For agriculture, fishery, land transport and intra-EU short sea shipping, Member States will be able to compensate up to 70% of a beneficiary’s extra costs due to the price increase of fuel and fertiliser caused by the crisis. The price increase will be determined by each Member State by looking at the difference between the relevant market price and an applicable historical benchmark price.
For these sectors, a simplified option will make it easier for beneficiaries to qualify for the aid. It allows Member States to calibrate individual aid amounts on elements like the size and type of beneficiaries’ activities, a general estimate of fuel consumption in the sector, or other relevant proxies, rather than beneficiaries having to provide detailed proof of their actual consumption.
