Middle East Energy Developments: European Commission proposes a State aid Temporary Crisis Framework

As it did during the banking crisis, the pandemic and Russia’s invasion of Ukraine, the Commission is planning to adopt specific temporary State aid rules to enable Member States to take swift and effective action to support citizens and companies, especially SMEs, facing economic difficulties due to the current volatility in energy markets. The State aid Temporary Crisis Framework sets the compatibility conditions under which the Commission will authorise aid upon notifications submitted by Member State. Under such frameworks, the duration of such procedures has been extraordinarily short in comparison with standard procedures. 

The draft State aid Temporary Crisis Framework, which is based on Article 107.3, c) of the Treaty on the Functioning of the European Union, provides for aid aimed at dealing with the impact of the current volatility in the energy market on some of the most exposed sectors of the economy, such as agriculture, fisheries, road transport and intra-EU short sea shipping. 

The draft State aid Temporary Crisis Framework currently contains the following categories of aid to be granted by Member States: 

• Calibrated temporary support for the most exposed sectors:
  • covering part of the price increases for fuel or fertilisers since 28 February 2026, based on beneficiaries' consumption; and
  • a simplified measure allowing a limited amount of aid per company (except for EU short sea shipping). On this basis, Member States may rely on relevant statistics to avoid individual tracking of actual consumption.
• An increased maximum aid intensity for the electricity costs for energy-intensive industries under Section 4.5 of the Clean Industrial Deal State Aid Framework (CISAF), above the existing maximum of 50%.

Furthermore, the Commission has announced that it is ready to assess, on a case-by-case basis and subject to several requirements, temporary measures that may include subsidising the fuel cost of gas-fired electricity generation to reduce overall electricity costs.

The draft proposal will also temporarily modify the CISAF that was adopted last June 2025 to allow higher aid intensities to deal with electricity price spikes.

Member States are invited to provide their observations on the current draft. They are also asked additional questions about the measures in the draft framework and on whether any further measures are required to deal with the impact of the current volatility in the energy market. 

There is not much time as the Commission plans to adopt the State aid Temporary Crisis Framework at the end of April. 

Member States now have the opportunity to comment on the Commission's draft proposal and answer the questions. The Commission will assess the responses quickly so that the Temporary Crisis Framework can be adopted by the end of April.

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Here is a link to the CMS expert guide on State aid: State aid legal guide | CMS Expert Guide