State aid: Commission approves €49 billion German scheme to support the economy in the context of Russia’s war against Ukraine

The European Commission has approved a €49 billion German scheme to support the economy in the context of Russia’s war against Ukraine. The scheme was approved under the State aid Temporary Crisis Framework.

The measure will be open to companies across sectors of all sizes which are final consumers of electricity, natural gas, and heat produced using natural gas and electricity. Under this measure, the aid will take the form of direct grants. The public support will be channelled via the energy suppliers through monthly instalments in the form of reductions of the electricity, natural gas and heat bills of the eligible beneficiaries.

The Commission concluded that the German scheme is necessary, appropriate and proportionate to remedy a serious disturbance in the economy of a Member State, in line with Article 107(3)(b) TFEU and the conditions set out in the Temporary Crisis Framework. On this basis, the Commission approved the aid measure under EU State aid rules.

Executive Vice-President Margrethe Vestager, in charge of competition policy, said:”Many industrial and commercial sectors have been hit by the increase of energy prices. This €49 billion scheme will enable Germany to mitigate the impact of the rising input costs on its economy and to temporarily shield electricity, gas and heat consumers from the effects of the extreme price rises.”