In the face of the surge in fuel and fertilizer prices, prompted by tensions in the Middle East, the European Commission activates a temporary State aid framework. Until December 31, 2026, member countries will be able to support agriculture, fishing, transport, and energy-intensive industries. Objective: cushion the shock without renouncing the ecological transition.
The European Commission announced last week the adoption of a temporary State aid framework to enable member countries to support sectors most exposed to the effects of the crisis in the Middle East, notably agriculture, fishing, transport, and energy-intensive industries.
This mechanism will remain in place until December 31, 2026 and will be subject to regular monitoring to adjust its content, scope, and duration according to the evolution of the situation in the Middle East and the general economic context, the European Executive stated in a press release.
The recent increases in energy prices demand an immediate response even though the transition to a green economy remains the best protection against future energy crises, underscored the European Commission’s Executive Vice-President, Teresa Ribera, noting that the adopted framework will “support key sectors such as agriculture, fishing and transport by cushioning the effects of the crisis.”
In detail, this new mechanism authorizes member states to compensate up to 70% of the additional costs linked to the rise in fuel and fertilizer prices for the agricultural, fishing, and intra-European land and maritime transport sectors.
These costs will be calculated based on the difference between current market prices and a historical reference price, as well as the consumption of the companies before the crisis. The scheme also provides a simplified procedure for smaller aid amounts, allowing member states to rely on sectoral estimates rather than detailed supporting documents.
Under this framework, each beneficiary can receive up to €50,000. For energy-intensive industries, the temporary framework allows increasing the electricity aid intensity from 50% to 70%, covering up to 50% of total eligible consumption, with no additional decarbonisation obligation.
