Overview

• On June 25, the European Commission presented the Clean Industrial Deal State Aid Framework, easing state aid rules under the EU treaty’s Article 107.
• CISAF introduces a temporary electricity price relief mechanism that allows governments to subsidize up to 50 percent of average wholesale electricity prices, with a floor of €50 per MWh.
• Member states including Germany, Italy and France are set to benefit as they seek to shield energy-intensive industries from surging power costs.
• The new rulebook preserves key safeguards by requiring aid to be proportionate, necessary and tied to clean technology and decarbonization investments.
• Employer organizations from 10 EU countries have warned that the measures fall short of what heavy industries need and urged broader support.