Brussels on Wednesday announced the temporary relaxing of state aid rules to allow EU countries to pour money into sectors badly hit by soaring energy costs.
Oil and gas prices surged in the wake of the US-Israeli war against Iran that began in February.
Now the EU executive said it would allow member states to let public cash flow into particularly hard-hit sectors like farming.
“The impact on our citizens and companies demands immediate answers. They need to be proportionate, they need to be effective,” EU competition chief Teresa Ribera said during a press conference in Brussels.
She added the EU was responding to member states’ call for “stronger support for energy-intensive industries” and “simple and flexible rules” for sectors that rely on imported fuels while “preserving a coordinated European approach”.
For example, EU countries can now give companies in farming, fishing, and transport money to cover part of the price increases for fuel or fertilisers based on actual consumption.
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The European Commission also provided a simplified option for the same sectors, under which EU states can hand out up to 50,000 euros ($58,500) to beneficiaries without the need for detailed proof of their fuel consumption.
Brussels hopes its measures will help small farmers with their fuel and fertiliser costs while giving room for more aid for diesel prices to transport firms.
The loser rules will be in place until December 31, 2026, but the commission said it would keep the measures under review in light of developments in the Middle East and the general economic situation.
Several EU states, including France, Germany, and Italy, have already announced measures to help households and businesses with higher energy costs.
AFP