The European Commission adopts a Temporary State aid Framework to support sectors impacted by the situation in the Middle East

The METSAF is, in principle, applicable until 31 December 2026, although it may be reviewed in light of developments in the situation as it has been the case for previous Temporary Frameworks.

As during the banking crisis, the COVID‑19 pandemic and the invasion of Ukraine by Russia, the Commission has introduced specific and temporary State aid rules to allow Member States to take swift and effective action to support citizens and businesses – particularly SMEs – facing economic difficulties resulting from the current volatility in energy markets.

The METSAF sets out the compatibility conditions under which the Commission will authorise aid on the basis of notifications submitted by Member States. However, approval procedures under this framework will be accelerated in comparison to standard State aid processes.

Based on Article 107(3)(c) of the Treaty on the Functioning of the European Union, the METSAF provides for aid aimed at mitigating the impact of ongoing energy market volatility on some of the most exposed sectors of the economy, including agriculture, fisheries, road transport, intra‑EU short‑sea shipping, and energy‑intensive industries.

The METSAF includes the following categories of aid:

• Temporary, targeted support for the most exposed sectors (agriculture, fisheries, road transport and intra‑EU short‑sea shipping):
  • Compensation of up to 70% of the additional costs incurred as a result of increases in fuel or fertiliser prices since 28 February 2026, calculated on the basis of beneficiaries’ consumption; and
  • A simplified aid option, capped at EUR 50,000 per undertaking (excluding intra‑EU short‑sea shipping). Member States may rely on relevant statistical data and other criteria, such as the size and nature of the beneficiary’s activity, to streamline administrative procedures and avoid individual monitoring of actual consumption.
• Support for energy‑intensive industries: An increased maximum aid intensity of up to 70% (instead of 50%) for electricity costs incurred by energy‑intensive industries under temporary electricity price relief schemes pursuant to Section 4.5 of the Clean Industrial Deal State aid Framework (CISAF).

As noted above, Member States are required to notify measures based on the METSAF, however, the Commission has put in place a fast‑track approval procedure for such notifications.

In addition, the Commission has indicated that it is prepared to assess, on a case‑by‑case basis and subject to specific conditions, temporary measures that may include the subsidisation of fuel costs for electricity generation from gas, with a view to reducing overall electricity prices.

CMS offers the broadest coverage and the largest team of State aid specialists in Europe and has extensive experience in designing and implementing aid schemes as well as support measures for individual projects.

Please feel free to consult our brochure to find the relevant CMS contact in your jurisdiction, and the CMS Expert Guide on State Aid for further insights.