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State aid rules
EU ETS STATE AID GUIDELINES
The Guidelines on certain State aid measures in the context of the system for greenhouse gas emission allowance trading post-2021 ("ETS State aid Guidelines") have been amended to address the increased risk of carbon leakage for additional energy-intensive industries, due to the sustained rise of emission costs under the EU Emissions Trading System in recent years. The inclusion of additional sectors will contribute to the competitiveness of EU industry while incentivising their decarbonisation.
State aid approvals
FRENCH RESTRUCTURING AID TO CORSAIR
The European Commission approved French restructuring aid of a total of €167.8 million to airline Corsair, subject to certain conditions. The aid consists of an €80 million write-off on loans that were approved by the Commission in 2020 and €87.8 million of additional financing.
RESCUE AID TO LINEAS GROUP
The Commission approved a Belgian €61 million rescue loan to rail freight operator Lineas Group SA/NV. In parallel, following a complaint from a stakeholder, the Commission concluded that two past measures relating to Lineas Group do not constitute State aid.
CAPACITY MECHANISM REFORM
The Commission approved the reform of the French electricity capacity mechanism to ensure security of electricity supply. The measure will run for 10 years as of November 2026. This aid measure aims to ensure that there is sufficient capacity to produce, store or flexibly consume electricity and that electricity production meets the expected demand.
FAST CHARGING STATIONS
The Commission approved €1.6 billion German State aid to support the deployment of publicly accessible fast-charging stations for electric heavy-duty vehicles at non-services rest sites along German motorways. Up to 1,410 charging points will be rolled out across over 120 non-services rest sites. The aid will take the form of direct grants and recurring payments. Contracts are to last for eight years, with possible extension to a maximum of twelve.
DECARBONISATION OF MANUFACTURING INDUSTRY
The Commission approved €4.1 billion Hungarian State aid for investments that add manufacturing capacity for the production of net-zero technologies, contributing to the objectives of the Clean Industrial Deal. The aid will take the form of grants and tax advantages and will be open to companies in Hungary. The aid may be granted until 31 December 2030.
The Commission approved €408 million Spanish State aid to support the decarbonisation of manufacturing processes in existing installations through the deployment of investments contributing to reductions of emissions from industrial activities, and the improvement of the energy efficiency of industrial processes.
The Commission approved an Italian State aid scheme to support investments that increase manufacturing capacity for net-zero technologies, in line with the objectives of the Clean Industrial Deal. The €1.5 billion aid will: (i) take the form of grants, subsidised loans or a combination of both, (ii) be open to companies in the whole territory of Italy, and (iii) may be granted until 31 December 2030.
NUCLEAR POWER
The Commission approved State aid to support the construction and operation of the first nuclear power plant in Poland. The nuclear plant is planned to have an electricity generation capacity of up to 3750 MW. It is scheduled to start operating in the second half of the 2030s. The project plays a central role in Poland's strategy to decarbonise electricity production. The total capital expenditure for the project is estimated at around €42 billion in nominal terms. This has been described as one of the largest inpidual aid packages in the history of the EU.
CHIPS FACTORIES
The Commission approved €623 million in German State aid for two new semiconductor manufacturing facilities. The aid consists of a €495 million measure for GlobalFoundries and a €128 million measure for X-FAB.
ASEPTIC FILLING PLANT
The Commission approved German State aid for the establishment of a new plant for the aseptic filling of injectable medicine into vials and syringes for pharmaceutical companies in Saarlouis. The aid will take the form of a direct grant of €47 million to Vetter Pharma. The Commission assessed the aid under Article 107(3)(c) of the Treaty on the Functioning of the EU, which allows Member States to promote the economic development of disadvantaged areas.
State aid investigations
NUCLEAR UNITS
The Commission opened an in-depth investigation to assess whether public support that the Czech Republic plans to grant for the construction and operation of two new nuclear units is in line with EU State aid rules. A preliminary assessment found that the project is necessary and that the aid facilitates the development of an economic activity.
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