-- The European Union is seeking feedback from member states on a proposed temporary crisis framework aimed at cushioning the bloc's economy from the fallout of escalating tensions in the Middle East, the European Commission said on Monday.
The proposal would allow governments to loosen state-aid restrictions under a targeted adjustment to the EU's Clean Industrial Deal State Aid Framework, enabling higher levels of financial support to industries hit by surging energy costs.
The plan would enable governments to provide temporary, calibrated aid to the most exposed sectors, including covering part of the rise in fuel or fertilizer costs compared with levels before Feb. 28.
The Commission is also considering raising the ceiling on aid intensity for electricity costs for energy-intensive industries beyond the current 50% cap under existing rules, a move designed to ease pressure on manufacturers grappling with higher power prices.
The EU executive signaled that it is open to approving further temporary interventions on a case-by-case basis, including potential subsidies for gas-fired power generation to help curb wholesale electricity prices.
The consultation marks the latest effort by Brussels to respond to energy market volatility triggered by the Middle East conflict.