EU relaxes state aid rules in the energy crisis - German relief package also in focus again

Created: 10/28/2022, 8:40 p.m

The EU has once again relaxed the rules on state aid.

Even more state aid measures are allowed in the member countries.

Again, equal competition is demanded.

Brussels – There has been heated discussion in the EU in recent weeks about relief in the energy crisis.

Macron calls for a "coherent" approach and was "angry" with Scholz.

The reason was the German 200 billion relief package that the traffic light had put together.

Now the EU is relaxing its state aid regulations again.

This should also have a positive effect on the German financial package.

EU relaxes state aid regulations – and calls for equal competition

Against the background of the energy crisis, the EU requirements for state aid are being relaxed further.

In addition, the rules will be extended by one year until the end of 2023, as the EU Commission announced on Friday.

The aim of the new legal framework is for EU countries to be able to help companies that are severely affected by high energy prices, said EU Competition Commissioner Margrethe Vestager.

The 200 billion relief package was hotly debated in the EU.

Poland accused Germany of distorting competition.

© Olivier Matthys/AP/dpa

In addition, incentives to save energy must be maintained and work must be done on the reasons for the crisis.

There should also be equal competitive conditions in the EU.

EU states such as Poland have repeatedly accused Germany of distorting competition with its extensive aid.

EU expands regulations: public guarantees of up to 90 percent possible

Specifically, according to the EU Commission's decision, aid now also falls under the new rules, which are intended to help achieve the European electricity saving targets.

In addition, companies that are affected by the increased energy costs should be able to receive more flexible and extensive support.

The subsidy for energy suppliers is also to be relaxed.

In exceptional cases, the EU states could provide public guarantees of more than 90 percent.

In the wake of Russia's invasion of Ukraine, the EU Commission introduced temporary state aid rules in March, allowing EU countries to prop up companies more easily.

The German relief package includes, among other things, an electricity and gas price brake, which is intended to relieve both industry and consumers.

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However, the parliamentary group leader of the European People's Party in the European Parliament, Manfred Weber (CSU), also criticized the nationally oriented package.

He warned against an increasing isolation of German politics in Europe.

"Berlin would have to be more communicative and involved with its neighbors when it comes to many decisions, such as the 200 billion euros that are now being launched," said the CSU politician on the sidelines of the CSU party conference in Augsburg on the television channel phoenix.

At the party conference, however, the CSU sharply criticized the traffic light coalition – including foreign policy.