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Earlier this week, the European Commission sent to Member States for consultation a draft proposal to prolong and adjust the State aid Temporary Crisis Framework. This communication, first adopted on 23 March 2022 and amended on 20 July, enables Member States to use the flexibility foreseen under State aid rules to support the economy in the context of Russia's war against Ukraine.

In view of the economic fallout resulting for Russian’s aggression on Ukraine and of its impact on the energy situation, the Commission is consulting Member States on possible amendments relating to:

• A prolongation of the Framework after 31 December 2022;
• A proportionate increase of maximum aid ceilings which enables Member States to provide direct grants or other forms of aid to companies in any sector affected by the crisis;
• A simplification of the criteria that enable Member States to support businesses affected by high energy prices, including energy-intensive users, ensuring that support remains targeted and proportionate while maintaining incentives for reducing energy demand;
• A clarification on the criteria that the Commission intends to apply for the assessment of recapitalisation support measures, to preserve effective competition; and
• Additional measures aimed at supporting electricity demand reduction, in line with the Commission's proposal on an emergency market intervention, on which a political agreement has been reached in Council on 30 September 2022.

Member States have now possibility to comment on the proposal before its upcoming adoption by the Commission.

Source: European Commission