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Document 52023XC01188
Communication from the Commission – Amendment to the Temporary Crisis and Transition Framework for State Aid measures to support the economy following the aggression against Ukraine by Russia
Communication from the Commission – Amendment to the Temporary Crisis and Transition Framework for State Aid measures to support the economy following the aggression against Ukraine by Russia
Communication from the Commission – Amendment to the Temporary Crisis and Transition Framework for State Aid measures to support the economy following the aggression against Ukraine by Russia
C/2023/8045
OJ C, C/2023/1188, 21.11.2023, ELI: http://data.europa.eu/eli/C/2023/1188/oj (BG, ES, CS, DA, DE, ET, EL, EN, FR, GA, HR, IT, LV, LT, HU, MT, NL, PL, PT, RO, SK, SL, FI, SV)
Official Journal |
EN Series C |
C/2023/1188 |
21.11.2023 |
COMMUNICATION FROM THE COMMISSION
Amendment to the Temporary Crisis and Transition Framework for State Aid measures to support the economy following the aggression against Ukraine by Russia
(C/2023/1188)
1. INTRODUCTION
1. |
On 9 March 2023, the Commission adopted its Communication on the Temporary Crisis and Transition Framework for State Aid measures to support the economy following the aggression against Ukraine by Russia (the ‘Temporary Crisis and Transition Framework’) (1). |
2. |
In the Temporary Crisis and Transition Framework, the Commission considered that the aggression against Ukraine by Russia and its direct and indirect effects, including the sanctions imposed by the European Union (EU) or its international partners and the counter measures taken, for example by Russia (the ‘current crisis’), had created significant economic uncertainties, disrupted trade flows and supply chains and led to exceptionally large and unexpected price increases, especially in natural gas and electricity, but also in numerous other input and raw materials and primary goods. Those effects taken together had caused a serious disturbance of the economy in all Member States across a wide range of economic sectors. On that basis, the Commission considered that it was appropriate to lay down the criteria for the assessment of State aid measures that Member States may take to remedy that serious disturbance with exceptional measures described in the Temporary Crisis and Transition Framework. |
3. |
Although the aggression against Ukraine by Russia has not ended, the economic situation in the Union has overall shown resilience in the face of the formidable shocks it has endured. However, the Commission’s Autumn Forecast (2) notes that the EU economy has lost momentum and barely grew in the first three quarters of 2023. Economic growth is lower than projected in the Summer Forecast and even further below the Spring Forecast. For 2024, EU GDP is still projected to grow, but still below potential and less than expected in summer. The general situation in the energy markets has improved since 2022, gas and electricity prices have fallen, and the risk for security of supply has decreased, also thanks to the multiple initiatives put in place by the Union to fight the energy crisis. |
4. |
While general risks for energy supplies still exist, the Commission considers that the exceptional measures set out in the Temporary Crisis and Transition Framework based on Article 107(3)(b) TFEU to remedy a serious disturbance can be phased out, also taking into account the risk of distortions resulting from these exceptional measures. In particular, the Commission has decided not to amend the phasing out of sections 2.2, 2.3 and 2.7 of the Temporary Crisis and Transition Framework which will expire on 31 December 2023. |
5. |
Nevertheless, the Autumn Forecast notes that the current crisis continues to pose risks and remains a source of uncertainty. This is particularly relevant as regards the development of energy supplies and prices during the winter heating period in view of the remaining vulnerability of energy markets. Recent episodes of market volatility, for example following the developments in the Middle East and their potential effects on global energy markets, also show that markets are still fragile and the fear of scarcity may trigger large reactions with serious repercussions on prices. To enable Member States to maintain existing support measures during that period so as to address those specific risks and their impact on the economies of the Member States, the Commission has decided to delay the phase-out of sections 2.1 and 2.4 of the Temporary Crisis and Transition Framework until 30 June 2024, to provide the required safeguards and time to administratively implement the necessary measures. With this prolongation, the maximum aid amounts under section 2.1 will be proportionally increased to specifically cover the winter heating period. Doing so will allow Member States in this period of heightened uncertainty and market volatility to be prepared to provide support to affected undertakings quickly if such aid is required and ensure effective implementation. |
6. |
While the Commission considers that a prolongation of existing schemes may be required, there should generally not be a need for entirely new support measures covering the period until 30 June 2024. If Member States nevertheless consider that further aid schemes under sections 2.1 and/or 2.4 of the Temporary Crisis and Transition Framework are required, the Commission will pay particular attention to the existing requirements laid down in these sections, including point 61(d) that requires the Member State concerned to provide a justification that the aid will only benefit undertakings affected by the current crisis. |
7. |
The Commission considers that there is no need to review the sections of the Temporary Crisis and Transition Framework aimed at supporting the transition to a net-zero economy (i.e., its sections 2.5, 2.6 and 2.8), which are based on Article 107(3)(c) TFEU, as they will remain in place until 31 December 2025. These sections are therefore unaffected by this amendment. |
2. AMENDMENTS TO THE TEMPORARY CRISIS AND TRANSITION FRAMEWORK
8. |
Point 61(a) is replaced by the following:
(*1) Aid granted on the basis of schemes approved under this section which has been reimbursed before granting new aid under this section will not be taken into account in determining whether the relevant ceiling is exceeded." (*2) When aid is granted in form of guarantees under this section, the additional conditions in point 67(i) apply." (*3) When aid is granted in form of loans under this section, the additional conditions in point 70(g) apply.’ " |
9. |
Point 61(c) is replaced by the following:
(*4) If the aid is granted in the form of a tax advantage, the tax liability in relation to which that advantage is granted must have arisen no later than 30 June 2024.’ " |
10. |
Point 62(a) is replaced by the following:
(*5) Aid granted on the basis of schemes approved under this section which has been reimbursed before granting new aid under this section will not be taken into account in determining whether the relevant ceiling is exceeded." (*6) When aid is granted in form of guarantees under this section, the additional conditions in point 67(i) apply." (*7) When aid is granted in form of loans under this section, the additional conditions in point 70(g) apply.’ " |
11. |
Point 63 is replaced by the following:
|
12. |
Point 72(a) is replaced by the following:
(*8) By way of derogation, when the aid is granted only after an ex post verification of the supporting documentation of the beneficiary and the Member State decides not to include the possibility to grant advance payments in line with point 74, aid may be granted until 31 December 2024 provided the eligible period as defined in point 72(e) is respected.’ " |
13. |
Point 72(b) is replaced by the following:
(*9) If the aid is granted in the form of a tax advantage, the tax liability in relation to which that advantage is granted must have arisen no later than 30 June 2024." (*10) When aid is granted in form of guarantees under this section, the additional conditions in point 67(i) apply." (*11) When aid is granted in form of loans under this section, the additional conditions in point 70(g) apply.’ " |
14. |
Point 72(c) is replaced by the following:
|
15. |
Within point 72(e), the definition of ‘t’ is replaced by the following:
|
16. |
The following point 73(e) is introduced:
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(1) Communication from the Commission on the Temporary Crisis and Transition Framework for State Aid measures to support the economy following the aggression against Ukraine by Russia (OJ C 101, 17.3.2023, p. 3).
(2) European Economic Forecast, Autumn 2023, European Economy Institutional Paper 258, available at: https://economy-finance.ec.europa.eu/document/download/4139ef72-9eb3-4fad-a116-ee87979f4d35_en?filename=ip258_en_0.pdf
ELI: http://data.europa.eu/eli/C/2023/1188/oj
ISSN 1977-091X (electronic edition)