(Finance) – The European Commission has sent a draft proposal to the Member States for consultation partially adjust the timetable for the elimination of the provisions of the Temporary Crisis and Transition Framework on State aidintroduced to provide a response to the crisis following Russia’s aggression against Ukraine and the unprecedented increase in energy consumption prices.
The EU executive proposes a 3 month extension provisions allowing Member States to continue granting limited amounts of aid to compensate for high energy prices, i.e. until March 31, 2024. This will allow Member States, where necessary, to extend their support schemes and ensure that businesses still affected by the crisis are not left out of the necessary support in the winter period.
Other measures – such as liquidity support in the form of state guarantees and subsidized loans, and measures aimed at supporting the reduction of electricity demand – they will not be extended beyond their current expiration date, which is the December 31st 2023.
“Despite the stabilization of the economic situation and the remarkable resilience of the Union economy as a whole, substantial uncertainty remains regarding energy prices next winter – commented the commissioner Didier Reynders, Head of Competition Policy – This situation is still a source of major concern for EU consumers and businesses. The proposal sent to Member States today would allow them to be prepared and provide additional limited support during that period, when necessary, while ensuring that the extraordinary rules remain temporary.”
“Furthermore, the Commission constantly monitors economic developments and stands ready to respond quickly to any unforeseen events – he added – The proposal is without prejudice to the provisions of the framework which allow Member States to provide additional support to accelerate investments needed to achieve net zero emissions targetswhich remain available until the end of 2025“.