On 23 March 2022, the European Commission adopted a new crisis Temporary Framework to enable Member States to use the flexibility foreseen under State aid rules to support the economy in the context of Russia’s invasion of Ukraine, while preserving the level playing field in Europe. The temporary framework will be in place until 31 December 2022.
It will enable Member States to provide State aid for three purposes:
- to support companies affected by the current crisis/sanctions/countersanctions;
- to ensure businesses keep access to liquidities;
- to compensate certain companies for their sudden high increases in energy costs.
Concerning direct government aid to affected companies:
- State aid (of any form, including direct grants) can reach up to €35.000 for affected companies in the agriculture, fisheries and aquaculture sectors and up to €400.000 per affected company in all other sectors.
- Aid does not need to be linked to an increase in energy prices, as the crisis affect the economy in multiple ways, including physical supply chain disruptions.
Concerning liquidity support in form of State guarantees and subsidised loans:
- Member States can provide subsidised State guarantees (to ensure banks keep providing loans to affected companies) through subsidised premiums, with reductions on the estimated market rate for annual premiums for new loans for SMEs and non-SMEs.
- Member States can enable public and private loans with subsidised interest rates (i.e. with an interest rate, which is at least equal to the risk-free base rate plus specified credit risk premiums applicable to SMEs and non-SMEs respectively).
- Specific limits apply to the maximum loan amount (based on operating needs, turnover, energy costs and liquidity needs).
Concerning state aid to compensate high energy prices:
- Aid (of any form, including direct grants) can be provided to partially compensate companies, in particular intensive energy users (as defined in the temporary framework), for additional costs due to recent energy price increase.
- The overall aid per beneficiary cannot exceed 30% of the eligible costs, with a maximum of €2 million.
- When the company incurs operating losses, Member States may grant further aid exceeding these ceilings, up to €25 million for energy-intensive users, and up to €50 million for companies active in specific sectors (e.g. aluminium production, glass fibers, fertilizer, etc.).
Some safeguards will apply:
- proportionality between the amount of aid and the scale of the business exposure to the crisis, taking into account its turnover and energy costs;
- Member States shall consider the setting-up of non-discriminatory requirements related to environmental protection or security of supply when granting aid.
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