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 fertilizers based on actual consumption.
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. (AFP)
