The European Commission has recently given its green light to an Austrian scheme worth around €3 billion. The scheme aims to provide financial support to companies in Austria that are facing escalating energy costs due to the ongoing Russia-Ukraine conflict. Approved under the State Aid Temporary Crisis and Transition Framework, this initiative seeks to alleviate the economic burden on affected businesses.
Aiding Energy-Intensive Companies:
The Austrian scheme comprises two essential measures designed to address the energy cost challenges faced by companies operating in the country. The first measure involves providing limited amounts of aid to compensate for the increased costs of various energy sources. The second measure focuses on aiding companies in covering additional expenses brought about by exceptional spikes in natural gas and electricity prices. In both cases, direct grants will be offered as the form of assistance.
Accessibility and Scope:
The scheme is designed to be inclusive, catering to companies of all sizes and sectors within Austria. However, certain sectors such as credit and financial institutions are exempted from the scheme. The aim is to ensure a fair and balanced distribution of support, while simultaneously minimizing potential disruptions within the Single Market.
In Alignment with EU State Aid Rules:
The European Commission has assessed and approved the Austrian scheme, recognizing its necessity, appropriateness, and proportionality in addressing the significant disturbance caused in the member state’s economy. The decision to grant approval is based on the provisions defined under Article 107(3)(b) TFEU, as well as the conditions outlined in the Temporary Crisis and Transition Framework.
Reaffirmation by Commissioner Didier Reynders:
Commissioner Didier Reynders, responsible for competition policy, acknowledged the ongoing impact of Russia’s war against Ukraine on member states’ economies, noting the prevailing uncertainties. He emphasized that through this substantial €3 billion scheme, Austria will be able to mitigate the current crisis’s consequences on businesses grappling with rising energy costs, particularly energy-intensive companies. The liquidity support provided will alleviate the burden and serve to limit any potential distortion of competition within the Single Market.
The European Commission’s approval of this extensive Austrian scheme serves as an impetus for providing support and relief to companies facing increased energy costs during this period of geopolitical tension. By offering necessary liquidity support, this initiative aims to stabilize affected businesses and restore confidence, thus contributing to the overall economic recovery of Austria. More information is available in the official press release.
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