A new framework for limited state aid is an appropriate response to the current crisis. However, it is important that these measures do not become complicated and administratively costly to implement; crucially, general measures such as tax relief on energy and fuels should be considered.
Due to the war in Ukraine and the effects of the war on the economy and businesses in Europe, the Commission has produced a proposal for a new temporary crisis framework for state aid. This mainly includes three types of measures: liquidity support in the form of loans; guarantees; and support to offset increased energy costs due to exceptionally high gas and electricity prices.
Swedish Enterprise believes that the Commission’s proposals to develop a new, limited legal instrument to make it easier for member states to implement specific necessary support measures during this crisis is an appropriate response to the current situation. This leads to a clearer and more efficient handling of the needs that may exist in member states to support certain companies in the crisis. It is welcome that this is done with a limited instrument and not done by expanding the temporary framework introduced in response to the pandemic.
However, the wide-ranging and extensive consequences of the current crisis are best met through a broad-based approach in the form of general cost-cutting measures. These do not typically constitute state aid, as the Commission also notes in its proposals. This is an additional reason to keep this time-limited exemption limited in scope; on top of which, there is already a comprehensive state aid regulatory framework in place that can be applied.