The aim is to provide liquidity to companies in the manufacturing industry, which are heavily dependent on natural gas.
Yesterday, the European Commission gave the green light to Spain’s support plan for the gas-intensive sector – paper mills, glass and ceramic manufacturers…– for a value of 125 million euros. This state aid package was approved in the context of the crisis surrounding the Russian invasion of Ukraine, which has caused a serious disruption to the economy and increased the price of gas and electricity.
The purpose of this financial support is to provide liquidity to companies in the manufacturing industry that are heavily dependent on gas and whose production costs have increased. The support will be used in the form of direct grants, which will not exceed EUR 400,000 per beneficiary and will be awarded before 31 December 2022.
The European Commission concludes that this aid plan is in line with Article 107 of the European Treaties, which includes the crisis framework, and that it gives Member States more flexibility to cope with a complex economic situation. In this way, European countries can offer assistance to companies affected by the sanctions against Russia, and compensate for the extra costs resulting from the excessive price of gas and electricity.
Brussels believes the financial support package approved yesterday is “necessary, appropriate and proportionate to remedy a serious disturbance in the economy”.
Source: La Verdad
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