The European Commission has announced that it has adopted a new temporary state aid framework aimed at supporting sectors affected by the economic impact of the Middle East crisis.
The Middle East crisis Temporary State aid Framework (METSAF) will remain in force until December 31, 2026, providing targeted and time-limited support.
Increased electricity cost compensation
A key element of the framework is the increase in electricity price compensation for energy-intensive industries.
METSAF allows member states to raise support levels for electricity price compensation schemes approved under the Clean Industrial Deal State aid framework from 50 percent to up to 70 percent of eligible electricity consumption costs, without requiring additional decarbonization commitments.
The framework also introduces a simplified mechanism allowing companies to receive support of up to €50,000 based on estimated fuel consumption, using sector benchmarks.
METSAF allows partial cumulation with aid granted under EU Emissions Trading System (ETS) state aid guidelines. Companies will be able to combine different support mechanisms for up to half of the total aid, improving overall effectiveness.
Steel sector welcomes flexibility
The German Steel Federation (WV Stahl) has welcomed the framework, noting that it introduces important flexibility for energy-intensive sectors. CEO Kerstin Maria Rippel highlighted that the ability to combine electricity price compensation with industrial electricity pricing schemes marks a significant improvement.
WV Stahl stressed that rapid implementation at national level is essential to deliver tangible cost relief. It also noted that under previous rules, limited flexibility reduced the effectiveness of existing support schemes, particularly in Germany.
Structural energy cost challenge remains
Despite the new measures, the steel sector emphasized that high electricity prices are a structural issue rather than a temporary crisis. Short-term aid alone is insufficient to restore competitiveness or support long-term investment.
The federation is calling for permanent policy measures, including full combinability of support instruments and broader eligibility across total electricity consumption. It reiterated the need for a competitive industrial electricity price of €50/MWh, covering all taxes, levies, and network charges, as a key condition for maintaining industrial competitiveness and enabling the transition to low-emission steel production.