Commission consults on prolonging and amending Temporary Crisis Framework
Process in Brief
The Commission has sent a draft proposal to Member States for consultation to prolong and amend the State aid Temporary Crisis Framework, originally adopted on 23 March 2022 and amended on 20 July 2022 to complement the Winter Preparedness Package and REPowerEU objectives. The draft aims to adjust the framework so Member States can continue to use State aid flexibility to support their economies in the context of Russia's war against Ukraine.
What Is at Stake
The consultation covers measures to ensure support remains targeted and proportionate while preserving a level playing field and advancing green objectives. Proposed amendments include a prolongation, a proportionate increase of maximum aid ceilings, targeted facilitation of liquidity support for energy companies, simplification of criteria for support to businesses affected by high energy prices, clarification of recapitalisation assessment criteria, and additional measures to support electricity demand reduction.
Timeline
Member States can now comment on the draft proposal and the Temporary Crisis Framework is currently applicable until 31 December 2022 for liquidity and energy cost measures and until end of June 2023 for renewables and decarbonisation.
Sources
Official Documents
- State aid: Commission consults Member States on proposal to prolong and amend Temporary Crisis Framework The Commission is consulting Member States on a draft proposal to prolong and amend the Temporary Crisis Framework in response to the energy crisis and Russia's war on Ukraine, including potential increases in aid ceilings and measures to improve liquidity and decarbonisation incentives.
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