Belgium, (Brussels Morning Newspaper) The European Commission proposed changes to the Temporary Crisis Framework adopted in March to support EU economies.
The EC pointed out in a statement on Monday that the scheme was put in place in response to the war in Ukraine.
Margrethe Vestager, European Commissioner for Competition, noted that “Russia’s unjustified military aggression against Ukraine continues… so does its impact on Ukrainians and also on our EU economy.”
She stressed that the EC wants to change Temporary Crisis Framework rules to help the bloc diversify its energy supplies and speed up the green push.
“As the crisis persists, we are also proposing to increase the maximum level of aid that can be granted under the framework… we will decide on the way forward taking into account the views of all member states and the need to preserve effective competition in the single market.”
War exacerbates crisis
The Commission noted that prolonged war in Ukraine has negative effects on the economy and exacerbates the energy crisis, which is why the body is proposing changes to the Temporary Crisis Framework.
It pointed out that the proposal presented to bloc members takes into consideration EU’s plans to move away from fossil fuels.
The body noted that it wants to consult with member states on plans to increase limits on state aid to companies in sectors hit by the crisis, plans to introduce new measures, support investments in the green push and more.
It pointed out that proposed amendments would simplify tender procedures and help EU member states to implement schemes quickly while protecting competition.
Proposed amendments would also allow bloc members to speed up diversification of energy supplies and reduce their dependency on fossil fuel imports through measures aimed at decarbonisation of industrial processes and improving energy efficiency.
The Commission reminded that it adopted the Temporary Crisis Framework on 23 March this year to help bloc members to support their economies and cushion the blow of rising energy prices.
It pointed out that Russian-controlled entities under EU sanctions will not be eligible for aid under the Temporary Crisis Framework, which is to stay in place until the end of the year.