Brussels, 20 November 2023
Commission adjusts phase-out of certain crisis tools of the State aid Temporary Crisis and Transition Framework
Today, the European Commission has adopted an amendment to the State aid Temporary Crisis and Transition Framework to prolong by six months a limited number of sections of the Framework aimed at providing a crisis response following Russia's aggression against Ukraine and the unprecedented increase in energy prices.
In particular, taking into account the feedback received from Member States, today's amendment postpones the phase-out of the provisions enabling Member States to grant limited amounts of aid (section 2.1 of the Framework) and aid to compensate for high energy prices (section 2.4 of the Framework). With this partial adjustment of the phase-out schedule of the Temporary Crisis and Transition Framework, Member States can maintain their support schemes to cover the upcoming winter heating period as a safety net in case certain companies continue to be affected by the economic disturbance caused by Russia's war on Ukraine. At the same time, Member States will be given more time beyond the winter heating period to implement the measures they may need to put in place. This will help Member States in the practical implementation of support measures.
Adjusted phase-out schedule of the Temporary Crisis and Transition Framework
Since the beginning of Russia's war against Ukraine and in the context of its direct and indirect effects on the EU economy, the State aid Temporary Crisis Framework, first adopted on 23 March 2022, and subsequently amended in July and October 2022 and replaced on 9 March 2023 by the Temporary Crisis and Transition Framework, enables Member States to provide timely, targeted and proportionate support to businesses in need. The Framework has allowed Member States to act quickly and effectively to help companies affected by the significant economic uncertainties, disrupted trade flows and supply chains, and the exceptionally large and unexpected price increases, in particular of natural gas, electricity, numerous other input and raw materials, and primary goods. Those effects taken together had caused a serious disturbance in the economy of all Member States across a wide range of economic sectors.
As Russia's war of aggression against Ukraine continues, the EU's economic situation is showing resilience in the face of the shocks it has endured. The situation in the energy markets and in particular gas and average electricity prices seem to have stabilised. While overall, the risks of energy supply shortages have receded, among other things due to the measures taken by Member States to diversify energy sources, the Autumn 2023 Economic Forecast notes that Russia's ongoing war against Ukraine and wider geopolitical tensions continue to pose risks and remain a source of uncertainty. In spite of the general positive trend, energy markets still remain vulnerable.
Today, taking into account the feedback received from Member States in the context of a survey of 20 July 2023 and a consultation on 6 November 2023, the Commission has adopted amendments to the provisions of the Temporary Crisis and Transition Framework enabling Member States to grant:
These two amendments will allow Member States, where needed, to extend their support schemes and ensure that companies still affected by the crisis will not be cut off from necessary support in the upcoming winter heating period. At the same time, the extension will facilitate Member States' practical implementation of support schemes by giving them sufficient time to do so until the end of June 2024.
The changes adopted today do not affect the remaining provisions of the Temporary Crisis and Transition Framework:
The Commission will continue to closely monitor the economic developments and stands ready to swiftly respond in the event of any new crisis situation. However, the Commission does not currently plan to consult Member States again on the dedicated crisis-related tools of the Temporary Crisis and Transition Framework, which will phase-out on 30 June 2024.
Background
The State aid Temporary Crisis Framework, adopted on 23 March 2022, enabled Member States to use the flexibility foreseen under State aid rules to support the economy in the context of Russia's war against Ukraine. The Temporary Crisis Framework was amended on 20 July 2022 to complement the Winter Preparedness Package and in line with the REPowerEU Plan objectives. The Temporary Crisis Framework has been further amended on 28 October 2022 in line with the Regulation on an emergency intervention to address high energy prices and the Regulation enhancing solidarity through better coordination of gas purchases, reliable price benchmarks and exchanges of gas across borders.
On 9 March 2023, the Commission adopted the current Temporary Crisis and Transition Framework to foster support measures in sectors which are key for the transition to a net-zero economy, in line with the Green Deal Industrial Plan.
The Temporary Crisis and Transition Framework, as amended, provides for the following types of aid, which can be granted by Member States:
Sanctioned Russian, Belarussian and Iranian entities in respect of actions undermining or threatening the territorial integrity, sovereignty and independence of Ukraine are excluded from the scope of these measures.
More information on the Temporary Crisis and Transition Framework and other actions taken by the Commission to address the economic impact of Russia's war against Ukraine and foster the transition towards a net-zero economy can be found here.
*Updated on 20th November at 15.34
Quote(s)
The Temporary Crisis and Transition Framework has been a crucial tool allowing Member States to provide urgently needed support to companies in times of an exceptional economic shock. It has shown that the Commission is willing and able to use the full flexibility provided by State aid rules where required. However, this Framework was always designed to be exceptional and limited in time. After almost two years, we are seeing more stable energy markets and an improving economic situation. This is why we have decided that the Framework’s crisis tools can be phased out. At the same time, uncertainty remains in view of the upcoming winter heating period. Today’s limited adjustment to the phase-out will allow Member States, where needed, to provide a safety-net to affected companies and facilitate the roll out of administrative procedures for Member States.
Commissioner Didier Reynders, in charge of competition policy - 20/11/2023
Commission launches new ‘EU One Stop Shop' to boost Green Line trade in Cyprus
Today, the Commission has launched the new ‘EU One Stop Shop Supporting Green Line Trade and Businesses' service in Nicosia, Cyprus. It is designed to provide information and technical assistance to businesses and individuals who are, or are interested in, trading across the Green Line in Cyprus.
Commissioner for Cohesion and Reforms Elisa Ferreira said: “Increasing Green Line trade is one of the Commission's priorities in Cyprus. Green Line trade brings people and businesses together and offers important economic opportunities for businesses from both communities. By fostering trade, we can help to build trust and confidence among the two communities.”
The ‘One Stop Shop' will provide easy access to valuable information on procedures for Green Line trade to both Greek Cypriot and Turkish Cypriot producers and traders. It will also inform on the EU standards and requirements that Turkish Cypriot products need to comply with when they are placed on the EU market. The service will employ experts who speak Greek, Turkish and English, will offer a new trilingual website, and will organise networking events for producers and traders.
Green Line trade is governed by the EU's 2004 Green Line Regulation, which sets out the terms in which people, goods and services can cross the Green Line. This is the line between the government-controlled and the non-government-controlled areas of Cyprus.
The ‘One Stop Shop' is financed from the EU aid programme for the Turkish Cypriot community, which aims to facilitate Cyprus' reunification. The EU has allocated €688 million to the aid programme since 2006.
Specific questions on the new service can be directed to info@eu-oss.com.
(For more information: Stefan De Keersmaecker – Tel.: +32 2 298 46 80; Laetitia Close – Tel.: +32 2 296 70 73)
European Hydrogen Week 2023 kicks off in Brussels
Today, the biggest annual event dedicated to hydrogen in Europe kicks off in Brussels, co-organised by the Commission. The European Hydrogen Week 2023 features a four-day high-level policy conference and forum which will bring together policymakers and hydrogen stakeholders to discuss the latest developments, challenges and opportunities in the sector. This afternoon, the event will launch with a video message from President von der Leyen and a keynote speech by Executive Vice-President Maroš Šefčovič on the role of hydrogen and the global challenges ahead, in particular the need to preserve the EU industry's competitiveness.
This morning, Commissioner Thierry Breton, attended the seventh Hydrogen Forum of the European Clean Hydrogen Alliance. The Forum takes stock of the progress achieved so far by the Clean Hydrogen Alliance and underlines the actions that are still necessary to scale up hydrogen production capacity across the supply chain to achieve our 2030 hydrogen ambition, in line with the REPowerEU plan.
At the high-level conference, Commissioner Kadri Simson will deliver a video message on Wednesday, addressing the importance of and upcoming actions to support hydrogen infrastructure. Commissioner Hoekstra will give a speech on Thursday on the EU's energy transition and the European Hydrogen Bank. Also on Thursday 23 November, the Commission will launch the Bank's first auction for the domestic production of renewable hydrogen, supported by the EU's Innovation Fund.
On Wednesday, the European Green Hydrogen Investment Day, will bring together more than 25 investors and 10 hydrogen ventures across the EU with both innovative hydrogen technology start-ups and large-scale projects. The week will culminate with a webinar ‘On the way to COP28', looking towards the upcoming UN Climate Change Conference in Dubai.
President von der Leyen's video message and Executive Vice-President Šefčovič's speech can be followed via EbS
(For more information: Tim McPhie – Tel.: +32 2 295 86 02; Johanna Bernsel - Tel.: + 32 2 298 66 99)
EU organises Air Bridge flight for those in need in Sudan
A latest EU Humanitarian Air Bridge (HAB) flight transporting supplies for humanitarian partners UNICEF, Emergency and Relief International, has delivered aid in Sudan this weekend. In May 2023 the EU launched a series of Humanitarian Air Bridge operations delivering essential supplies to Port Sudan as the conflict that broke out in April this year has created a difficult humanitarian situation with hundreds of thousands of internally displaced. To-date, five HAB operations to Port Sudan have taken place, transporting a total of around 161 tonnes of supplies, including medications to help address the recent cholera outbreak in Sudan.
Commissioner for Crisis Management Janez Lenarčič said: “The situation in Sudan is extremely alarming. Yet again innocent civilians are bearing the brunt of a conflict. Since its beginning, the EU has worked to help alleviate the suffering and provide relief to the most vulnerable. I reiterate my call on all sides to respect International Humanitarian Law so as to protect the civilian population and ensure that humanitarians can do their lifesaving work in safety and without being blocked by administrative or other hindrances.”
With over 7 million people displaced due to the conflict, Sudan represents the biggest displacement crisis globally. There are reports of atrocities, including ethnic cleansing and gender-based violence against women, across the country. The total number of children in Sudan who are out of school has reached 19 million. The devastating impacts of the conflict on livelihoods, the agriculture sector and the economy at large means that Sudan is one of the top four global hunger hotspots. The situation is made even worse due to the ongoing cholera epidemic and the recent floods.
(For more information: Balazs Ujvari - Tel.: +32 2 295 45 78; Daniel Puglisi - Tel.: +32 2 296 91 40)
CALENDAR
20/11/2023
President Ursula von der Leyen in Berlin: participates in the G20 Compact with Africa conference, hosted by Mr Olaf Scholz, Federal Chancellor of the Federal Republic of Germany.
Mr Josep Borrell in Jordan: meets with Mr Ayman Safadi, Minister for Foreign Affairs of Jordan; meets with King Abdallah II of Jordan.
Mr Margaritis Schinas delivers via videoconference opening remarks at the 7th Thessaloniki Summit ‘South-East Europe's moment : Chartering a new course to prosperity & stability'.
Ms Stella Kyriakides delivers a keynote speech at the Global Health Policy Forum; and delivers the opening speech via videoconference at the European Centre for Disease Prevention and Control event, organised on the occasion of European Antibiotic Awareness Day.
21/11/2023
College Meeting in Strasbourg
President Ursula von der Leyen in Strasbourg: receives Ms Iratxe García-Pérez, Chair of the Progressive Alliance of Socialists and Democrats in the European Parliament; receives Ms Iratxe García-Pérez and Mr Stéphane Séjourné, Chairs of the Progressive Alliance of Socialists and Democrats and the Renew Europe Groups in the European Parliament; receives Ms Terry Reintke and Mr Philippe Lamberts, Co-Chairs of the Greens/EFA Group in the European Parliament; receives Mr Dacian Cioloș, Member of the European Parliament.
Mr Margaritis Schinas in Strasbourg: meets with a delegation of French regional préfets .
22/11/2023
President Ursula von der Leyen participates in the Virtual G20 Leaders' Summit.
Ms Stella Kyriakides holds a videoconference with representatives of Bulgarian cancer patient associations.
23/11/2023
President Ursula von der Leyen in Canada: participates in the EU-Canada Summit.
Ms Stella Kyriakides in Strasbourg, France: participates in the Animal Welfare Intergroup November session.
24/11/2023
Ms Stella Kyriakides in Nicosia, Cyprus: delivers a speech at the European Seniors' Union Conference at the University of Nicosia.
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