The European Commission on Wednesday adopted a temporary "state aid framework" to help member states support key sectors affected by the ongoing Middle East crisis.
The framework, called the "Middle East Crisis Temporary State Aid Framework" (METSAF), will remain in force until Dec. 31, and targets sectors most exposed to rising energy and input costs, including agriculture, fisheries, transport, and energy-intensive industries.
According to the commission, the scheme aims to mitigate the economic impact of surging fuel and fertilizer prices while ensuring that businesses' growth is not permanently disrupted.
Under the framework, member states will be allowed to compensate up to 70% of additional costs linked to fuel and fertilizer price increases for companies in agriculture, fisheries, land transport, and short sea shipping.
These costs will be calculated based on current or pre-crisis consumption levels compared with historical benchmark prices.
A simplified mechanism will also enable smaller beneficiaries to receive aid of up to €50,000 ($58,528) without providing detailed consumption data, relying instead on sector-wide estimates or proxies.
For energy-intensive industries, the framework introduces temporary flexibility to existing rules, allowing aid intensity for electricity costs to rise from 50% to as much as 70%.
The move follows calls by the European Council in March for targeted, temporary action to address spikes in fossil fuel prices and volatility in electricity markets.
The EU Commission added that it will continue to review the scope and duration of the framework in light of developments in the Middle East and broader economic conditions.
