EU wants to give more help to companies affected by the Ukraine crisis – POLITICO

The European Commission will announce new state aid rules on Tuesday, allowing EU countries to support companies hit by the crisis in Ukraine, an EU official said.

The move follows a proposal by EU Competition Commissioner Margrethe Vestager on March 10 and a consultation with capitals. Vestager said she stands ready to use “the full flexibility of our state aid toolbox” while ensuring the aid does not give certain companies an unfair advantage.

Russia’s invasion of Ukraine and the subsequent sanctions and counter-sanctions are expected to hit the EU hard. Prices from oil and gas have already skyrocketed due to Europe’s dependence on Russian energy. Food commodity prices have also risen sharply as a result of the conflict, and specific dependencies on Russian commodities could have a devastating impact on supply chains.

As part of RepowerEU’s plan to diversify the EU’s energy supply away from Russia, the Commission said on March 8 it was considering relaxing subsidy rules.

The new framework will allow limited aid to be given to companies hit by the crisis or the sanctions and counter-sanctions, the official said.

EU countries will also be allowed to ensure that companies have sufficient liquidity available.

The framework will also allow EU member countries to compensate businesses for extra costs they incur as a result of exceptionally high gas and electricity prices, the official added.

A similar temporary state aid framework was adopted shortly after the coronavirus outbreak in 2020, allowing for swift EU approval trillion help. Fears that the government’s pandemic-related bailout packages would further widen the gap between Europe’s richer north and poorer south have not materialized, partly because the imbalance has been corrected by the EU recovery fund.

https://www.politico.eu/article/eu-allows-more-aid-to-companies-affected-by-ukraine-crisis/?utm_source=RSS_Feed&utm_medium=RSS&utm_campaign=RSS_Syndication EU wants to give more help to companies affected by the Ukraine crisis – POLITICO

Fry Electronics Team

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