The European Commission has announced a temporary relaxation of state aid rules, allowing member states to provide increased financial support to sectors heavily affected by rising energy costs.
The move, unveiled in Brussels on Wednesday, comes in response to surging oil and gas prices following the ongoing conflict involving the United States and Iran, which began in February.
Under the revised framework, EU countries will be permitted to channel public funds into vulnerable industries, particularly agriculture, as part of broader efforts to cushion the economic impact.
“The impact on our citizens and companies demands immediate answers. They need to be proportionate, they need to be effective,” said EU competition chief Teresa Ribera during a press conference.
She added that the decision responds to calls from member states for “stronger support for energy-intensive industries” and “simple and flexible rules” for sectors reliant on imported fuels, while “preserving a coordinated European approach”.
Under the new measures, governments can provide financial assistance to companies in sectors such as farming, fishing, and transport to offset part of the rising costs of fuel and fertilisers, based on actual consumption.
The Commission also introduced a simplified scheme enabling member states to grant up to €50,000 ($58,500) to beneficiaries in these sectors without requiring detailed documentation of fuel usage.
Officials say the initiative is designed to ease cost pressures on small-scale farmers and transport operators, particularly in relation to diesel and fertiliser expenses.
The relaxed rules will remain in effect until December 31, 2026, although the Commission said it would continue to monitor the situation in light of developments in the Middle East and broader economic conditions.
Several EU countries, including France, Germany, and Italy, have already rolled out measures to support households and businesses grappling with higher energy costs.
