The European Commission has adopted a temporary state aid framework to enable Member States to support the EU economy in the context of the crisis in the Middle East. The Temporary State Aid Framework in response to the crisis in the Middle East (METSAF) is a targeted and time-limited framework designed to address the impact of the crisis on some of the most vulnerable sectors of the economy: agriculture, fisheries, transport, and energy-intensive industries. METSAF will remain in force until December 31, 2026. During the framework’s implementation period, the Commission will review its content, scope, and duration in light of developments in the Middle East and the overall economic situation.

Although the transition to a clean economy remains the long-term solution to protect EU companies from the consequences of global energy shocks, METSAF allows Member States to act immediately to ensure that the growth of the most at-risk companies is not irreparably hindered by the current crisis.

To this end, support can take various forms for companies operating in the agriculture, fisheries, and transport sectors. This includes aid based on actual consumption to cover part of the increases in fuel or fertilizer prices and a simplified approach for de minimis aid.

METSAF also includes a temporary adjustment to the State Aid Framework in connection with the Clean Industry Pact (CISAF), which allows for greater flexibility and higher aid intensities to address rising electricity prices.

Specifically, the framework allows for the following:

• For agriculture, fisheries, land transport (road, rail, and inland waterways) and short-sea shipping within the EU, Member States will be able to compensate up to 70% of the beneficiary’s additional costs resulting from the increase in fuel and fertilizer prices caused by the crisis. The price increase will be determined by each Member State by considering the difference between the relevant market price and the applicable historical reference price. The total additional costs will then be calculated based on the beneficiary’s current expenditure or their expenditure immediately prior to the crisis.
• For these sectors, the simplified option will make it easier for beneficiaries to meet the conditions for receiving aid. It allows Member States to calibrate the amount of individual aid based on factors such as the size and type of the beneficiaries’ operations, an overall assessment of fuel costs in the sector, or other relevant comparables, rather than requiring beneficiaries to provide detailed evidence of their actual costs. Under this option, each beneficiary may receive up to 50,000 EUR.
• For energy-intensive sectors eligible for temporary electricity price relief schemes in accordance with Section 4.5 of the CISAF, it will be possible to increase the aid intensity from 50% to up to 70% of electricity costs for eligible consumption. This may cover up to 50% of the beneficiary’s total costs. No additional decarbonization efforts will be required. Cumulation with aid granted under the State Aid Guidelines for RES will be possible up to half the amount of aid granted under the schemes under Section 4.5 of CISAF.

The Commission will need to be notified of METSAF measures. The framework will allow for a fast-track approval process.

The Commission is prepared to assess, on a case-by-case basis and subject to certain requirements, temporary measures that may include subsidizing fuel costs for gas-fired power generation to reduce overall electricity costs.

Context

In its conclusions of 19 March 2026, the European Council called for targeted temporary measures to address the recent spikes in prices of imported fossil fuels. Furthermore, in line with the letter from the President of the Commission dated March 16, 2026, the Council called for measures to reduce electricity prices and address excessive short-term volatility.

METSAF is one of the initiatives proposed by the Commission in response to these concerns. Consultations were held with Member States regarding its development.

METSAF complements the broad scope for Member States to adopt measures in accordance with existing EU state aid rules. For example, EU state aid rules allow Member States to help companies address liquidity shortages and those in need of urgent restructuring support. Furthermore, Article 107(2)(b) of the Treaty on the Functioning of the EU allows Member States to compensate companies for damage directly caused by an exceptional event.

To address the impact of the crisis in the Middle East, Member States can continue to rely on the specific State aid rules applicable to the sectors covered by METSAF. For the agricultural sector, existing options include the Agricultural Block Exemption Regulation or the Guidelines on State aid in the agriculture and forestry sectors and in rural areas. For the fisheries sector, aid may be exempted from the notification requirement in accordance with the Block Exemption Regulation for the Fisheries Sector or be subject to notification in accordance with the Guidelines on State Aid for Fisheries and Aquaculture. There are also several options for supporting road and maritime transport, such as the rules on public passenger transport services by rail and road, the guidelines on State aid for maritime transport, and the General Block Exemption Regulation.