The European Commission on Thursday approved plans by the German government to support energy-intensive industries with €3.8 billion in the coming years.
The funding is meant to temporarily relieve companies from high electricity prices in a bid to avoid moving activities outside the European Union where energy prices are often lower and environmental standards less strict, the commission said on Thursday.
The aid scheme allows eligible businesses operating in Germany to apply for relief payments and is set to support energy-intensive sectors until the end of 2028.
Beneficiaries will however be required to invest at least half of the aid received in measures aimed at reducing the company's electricity costs without increasing the use of fossil fuels.
The aid plans are linked to long-term competitiveness issues in the EU, but coincide with the recent rise in energy prices triggered by the war in Iran.
State aid in the EU is strictly regulated to ensure a level playing field between economically strong and less affluent member countries and, in many cases, requires the approval of the commission.
The commission also approved similar plans by Bulgaria for aid payments worth €334 million and by Slovenia over €90 million.
Manufacturing businesses in the EU have been under increasing pressure amid growing competition from the United States and China.
Alongside comparably high energy prices, red tape, fragmented rules across the bloc and low investments are seen as some of the reasons for the EU's faltering competitiveness.
- Germany
- EU
- Billions
- Aid
Source: www.dailyfinland.fi
