BRUSSELS, April 29 (NNN-Bernama-dpa) — The European Union (EU) is loosening its usually strict state aid rules to allow higher electricity subsidies for energy-intensive industries and other support measures to cushion the economic fall-out from the conflict in West Asia, reported German Press Agency (dpa).
“The recent spikes in energy prices require an immediate response,” said EU Commission Vice President Teresa Ribera on Wednesday.
Under the new rules in place until the end of the year, national governments can support energy-intensive industries — like steel or chemicals manufacturing — more generously, compensate up to 70 per cent of extra fuel and fertiliser costs and simplify requirements for aid payments of up to €50,000 (US$58,490).
The new rules are meant to allow capitals “to act immediately to make sure that the growth of the most exposed companies is not irreparably hampered by the current crisis”, the commission said.
State aid in the EU is strictly regulated to ensure fair competition between companies from economically affluent EU countries and those from less wealthy nations, but the commission can decide to ease rules in case of emergencies.
— NNN-BERNAMA-dpa