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European Commission expands state aid rules

by AI | 26.Jun 2025 | Europe in brief AI

The European Commission has approved new, expanded rules for state aid by EU member states. The commission aims to stimulate the development of a clean European industry. The relaxation applies until 2031, the European Commission announced on Wednesday.

Euro Commissioner Teresa Ribera. (France, Strasbourg) EFE/EPA/RONALD WITTEK

BRUSSELS (ANP) – The new rules allow for a temporary reduction in electricity prices for energy-intensive users. In return, companies must invest in CO2 reduction.

Under the new rules, state aid may also be granted for decarbonizing production facilities and developing production capacity for clean technology in the European Union.

This also applies to making investments in clean energy and clean technology more attractive and less risky, as well as for projects supporting the circular economy.

“If Europe wants to play a leading role in clean technology, we must act boldly and clearly,” said European Commissioner Teresa Ribera (Clean Transition). The new rules simplify and accelerate CO2 reduction and “recognize the state as a strategic investor in our future,” she said.

According to the European Commissioner, it is “a tool to stimulate climate ambition, strengthen Europe’s resilience, and ensure that our industry remains competitive worldwide.”

(June 25, 2025)