The war in Iran has sent energy prices so high that the EU Commission is now allowing EU countries to provide increased state aid for the rest of 2026. However, the proposal is only aimed at some of the most vulnerable sectors. These are agriculture, fisheries and transport, as well as energy-intensive industries. This is according to Executive Vice-President of the EU Commission Teresa Ribera.
- The proposal enables easily implementable solutions that will support the continued development of key EU sectors such as agriculture, fisheries and transport. This is done to mitigate the effects of the crisis, says Teresa Ribera.
She suggests that the proposal can be adjusted. This could happen, for example, if developments in the Middle East lead to either higher or lower energy prices.
When it comes to the agricultural, fisheries and transport sectors, the EU Commission is opening up state aid to cover part of the price increases for fuel or fertilizer. At the same time, more support will be provided to counter increases in electricity prices.
According to the proposal, EU countries will be able to provide companies with compensation of up to 70 percent of additional costs resulting from the price increase for fuel and fertilizer. The price increase must be determined by the individual EU country. This must be done by looking at the difference between the price now and before the war in Iran.
Under the scheme, each beneficiary can receive up to 50,000 euros. This corresponds to around 370,000 kroner. When it comes to energy-intensive companies, the proposal will make it possible to increase the support from the current 50 percent to up to 70 percent of electricity costs.
According to the EU Commission, there will be no requirement for companies to make an additional green transition in order to receive the support. However, this does not mean that the EU Commission is relaxing its goal of making Europe the world's first climate-neutral continent by 2050 at the latest, says Teresa Ribera.
- It is a green economy that will protect us from future energy crises. However, the recent increases in energy prices require an immediate response, she says.
If an EU country wants to make use of the possibilities in the proposal, it must notify the EU Commission.
- The framework agreement will enable a rapid approval process, the EU Commission states in the proposal.
/ritzau/
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