Commission adopts temporary State aid framework to support sectors affected by Middle East crisis

The European Commission has adopted a temporary State aid framework to enable Member States to support the EU economy in the context of the Middle East crisis. The Middle East crisis Temporary State aid Framework (METSAF) is a targeted and temporary framework to address the effects of the crisis on some of the most exposed sectors of the economy: agriculture, fishery, transport and energy-intensive industries. The METSAF will be in place until 31 December 2026. During its period of application, the Commission will keep the content, scope and duration of the Framework under review in the light of developments in the Middle East and in the general economic situation.

While the transition towards a clean economy remains the long-term solution to shield EU companies from the effects of global energy shocks, the METSAF allows Member States to act immediately to make sure that the growth of the most exposed companies is not irreparably hampered by the current crisis.

To this end, support can take various forms for companies active in the agriculture, fishery and transport sectors. This includes aid based on actual consumption to cover part of the price increases for fuel or fertilisers, and a simplified approach for small amounts of aid.

The METSAF also includes a temporary adjustment to the Clean Industrial Deal State aid Framework (CISAF) allowing for further flexibility and higher aid intensities to address electricity price spikes.

Specifically, the framework allows for the following:

• For agriculture, fishery, land transport (road, rail and inland waterways) and intra-EU short sea shipping, Member States will be able to compensate up to 70% of a beneficiary's extra costs due to the price increase of fuel and fertiliser caused by the crisis. The price increase will be determined by each Member State by looking at the difference between the relevant market price and an applicable historical benchmark price. The total extra costs will then be calculated based on the beneficiary's current or latest pre-crisis consumption.
• For these sectors, a simplified option will make it easier for beneficiaries to qualify for the aid. It allows Member States to calibrate individual aid amounts on elements like the size and type of beneficiaries' activities, a general estimate of fuel consumption in the sector, or other relevant proxies, rather than beneficiaries having to provide detailed proof of their actual consumption. Under this option, each beneficiary can receive up to €50,000.
• For energy-intensive industries eligible under temporary electricity price relief schemes in line with section 4.5 of the CISAF, it will be possible to increase the aid intensity from 50% to up to 70% for the electricity cost of the eligible consumption. This can cover up to 50% of the total consumption of the beneficiary. No additional increase in decarbonisation efforts will be required. A cumulation with aid granted under the ETS State aid Guidelines will be possible for up to half of the aid amount granted under Section 4.5 CISAF schemes.

Measures under the METSAF will have to be notified to the Commission. The framework will allow for a fast approval process.

The Commission stands ready to assess, on a case-by-case basis and subject to several requirements, temporary measures that may include subsidising the fuel cost of gas-fired electricity generation to reduce overall electricity costs.

Background

In its conclusions of 19 March 2026, the European Council called for targeted temporary measures to address the recent spikes in the prices of imported fossil fuels. Furthermore, echoing the letter of the Commission President of 16 March 2026, the Council called for measures to lower electricity prices and to address excessive volatility in the short term.

The METSAF is one of the initiatives put forward by the Commission to address these concerns. Member States were consulted on its design.

The METSAF complements the ample possibilities for Member States to enact measures in line with existing EU State aid rules. For example, EU State aid rules enable Member States to help companies cope with liquidity shortages and needing urgent rescue aid. Furthermore, Article 107(2)(b) of the Treaty on the Functioning of the EU enables Member States to compensate companies for the damage directly caused by an exceptional occurrence.

In order to address the impact of the Middle East crisis, Member States can continue relying upon the specific State aid rules applicable to the sectors covered by the METSAF. For the agriculture sector, existing possibilities include the Agricultural Block Exemption Regulation or the Guidelines for State aid in the agricultural and forestry sectors and in rural areas. For the fishery sector, aid can be exempted from notification in accordance with the Fishery Block Exemption Regulation or notified in line with the Guidelines for State aid in the fishery and aquaculture sector. Several options also exist to support road and maritime transport, such as the rules on public passenger transport services by rail and by road, the guidelines on State aid to maritime transport as well as the General Block Exemption Regulation.