Temporary Crisis and Transition Framework for State Aid measures to support the economy following the aggression against Ukraine by Russia

Summary:

Communication adopted by the European Commission on 9 March 2023, introducing amendments to the State Aid Temporary Crisis Framework first introduced to allow Member States of the European Union (EU) to support the economy following Russia's invasion of Ukraine.

Further information:

In March 2022, the European Commission adopted a Temporary Crisis Framework to enable Member States to support the economy in the context of Russia's invasion of Ukraine, hence complementing the already existing State Aid toolbox. In July 2022, a first amendment was adopted to complement the Winter Preparedness Package and in line with the REPowerEU Plan objectives. In October 2022, the Framework was prolonged and amended for a second time, in view of the ongoing conflict, feedback received from EU Member States, the adoption of Regulation (EU) 2022/1854 and a draft emergency regulation to address high energy prices.

This Temporary Crisis and Transition Framework (TCTF) partly builds on and prolongs the existing provisions. Additionally, it seeks to foster support measures in sectors which are key for the transition to a net-zero economy, in line with the Green Deal Industrial Plan. It was adopted by the European Commission on 9 March 2023 and published in the Official Journal on 17 March 2023.

Official

European Commission: DG Competition: State Aid: Temporary Crisis Framework (Ukraine) https://competition-policy.ec.europa.eu/state-aid/ukraine_en

European Commission: Remarks by Executive Vice-President Vestager on the proposal for a State aid Temporary Crisis and Transition Framework (1 February 2023) https://ec.europa.eu/commission/presscorner/detail/en/SPEECH_23_527

European Commission: Press Release, 09/03/2023: State aid: Commission adopts Temporary Crisis and Transition Framework to further support transition towards net-zero economy https://ec.europa.eu/commission/presscorner/detail/en/ip_23_1563

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News

Politico, 02/03/2023: Vestager slams state aid ‘greenwashing’ https://www.politico.eu/article/vestager-hits-out-at-state-aid-greenwashing/

France24: Business Daily, 09/03/2023: EU loosens state aid rules in US green subsidies battle https://www.france24.com/en/tv-shows/business-daily/20230309-eu-loosens-state-aid-rules-in-us-green-subsidies-battle

Euronews, 09/03/2023: EU relaxes subsidy rules to prevent green tech companies from relocating to the United States https://www.euronews.com/my-europe/2023/03/09/eu-relaxes-subsidy-rules-to-prevent-green-tech-companies-from-relocating-to-the-united-sta

Bloomberg, 09/03/2023: EU Loosens Aid Shackles to Counter US Clean-Tech Subsidies https://www.bloomberg.com/news/articles/2023-03-09/eu-prepares-state-aid-changes-to-counter-us-clean-tech-subsidies?leadSource=uverify%20wall

EurActiv, 13/03/2023: EU state aid: The good and the bad of opening the floodgates https://www.euractiv.com/section/economy-jobs/news/eu-state-aid-the-good-and-the-bad-of-opening-the-floodgates/

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Commentary and Analysis

BBC World Service: Business Matters, 10/03/2023: EU responds to US Green Deal by relaxing state aid rules https://www.bbc.co.uk/programmes/w172ydqcfdbgb0k

Reuters: BreakingViews, 16/03/2023: EU and US green arms race misses bigger picture https://www.reuters.com/breakingviews/eu-us-green-arms-race-misses-bigger-picture-2023-03-16/

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