European state aid rules are temporarily relaxed. The heads of government agreed on this during the Brussels summit. The measures should ensure that the country’s bloc remains attractive as a producer of cleantech and can compete with the US and China
The relaxation of rules should make it easier for EU countries to invest in renewable energy, decarbonise industry, hydrogen and zero-emission vehicles. European leaders agreed on this during the EU summit in Brussels. The measures should ensure that the country’s bloc remains attractive as a producer of cleantech and can compete with the US and China.
Until the end of 2025
Last week, the European Commission proposed an easing of state aid rules until 31 December 2025. Aid procedures should also be speeded up and tax breaks should be possible in sectors strategic for the green transition but affected by state aid foreign markets enjoyed by competitors or high energy prices. Furthermore, money from existing EU funds must be more flexible for investments.
United States
The loosened state aid rules are part of plans that should form the European counterweight to the so-called Inflation Reduction Act (IRA), the package of tax breaks and subsidies through which President Joe Biden supports American industry to accelerate the green transition. They also have to help compete with Chinese companies that are sometimes heavily subsidized by their government.
Source: BNR
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