EU proposes amendments to State aid Temporary Crisis Framework

Process in Brief

The Commission put the Temporary Crisis Framework in place in March and amended it in July to include measures to accelerate renewable rollout and industrial decarbonisation. It is now consulting Member States on a proposal to prolong and amend the Framework, and the proposal already reflects input from a mid-September survey of Member States.

What Is at Stake

The statement frames the work as a response to a severe energy crisis that affects households and businesses and requires support for the most vulnerable and for critical industries while reducing energy demand and fossil-fuel dependency. The proposal aims to enable liquidity support to energy utilities amid market volatility, clarify conditions for public recapitalisations, and facilitate targeted support to firms including energy-intensive users, while maintaining incentives to cut energy use and preserving the Single Market and a level playing field.

Timeline

The Commission’s consultation with Member States is ongoing and the proposal will be progressed in cooperation with Member States.