In March, the European Commission relaxed the rules on state aid to cushion the consequences of the sanctions against Russia for its own member states. These exceptions should actually expire at the end of the year. Now Brussels is working on a follow-up that will even provide further relaxation.
As shown by a European Commission draft new competition rules in the context of the energy crisis, available to the German News Agency, the rules could be further relaxed. In the Commission’s draft, aid to help achieve the European electricity saving targets is now also covered by the relaxed competition rules.
In addition, the possibilities for measures to support companies in other cases will be expanded. According to the paper, this also includes when companies affected by the crisis were likely to cease operations without assistance and this could likely lead to significant additional disruptions, especially in energy markets and thus the economy as a whole. It is emphasized that aid should in no case go beyond ensuring the viability of a company.
Profit sharing for states as a condition
In addition, State aid must be subject to conditions, such as offering the State a fair share of the beneficiary’s future profits. In addition, the volume of aid to individual companies should be increased.
Source: Krone
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
