European Commission adopts temporary state aid framework for Middle East crisis

The European Commission has introduced the Temporary Crisis and Transition Framework (METSAF) to enable member states to provide financial support to businesses impacted by the crisis in the Middle East. Presented by Executive Vice-President Teresa Ribera in Strasbourg, this framework targets vulnerable sectors including agriculture, fisheries, transportation, and energy-intensive industries. Measures will remain in effect until December 31, 2026, with periodic reviews based on regional developments and economic conditions. Member states are required to notify the Commission of their planned aid schemes for rapid approval. Support options include subsidies for fuel and fertilizer price increases, with the possibility of covering up to 70% of additional costs in specific sectors. For energy-intensive industries, aid intensity for electricity costs can be increased from 50% up to 70%, covering half of total consumption. Additionally, a simplified aid option allows beneficiaries to receive up to 50,000 euros. The Commission also expressed readiness to examine case-by-case measures, such as subsidizing fuel costs for gas-based electricity production, to help stabilize energy prices.