State Aid: European Commission approves amendments to Irish scheme to further support companies in the context of Russia's war against Ukraine

The European Commission has found the amendments to an existing Irish scheme to further support companies in the context of Russia's war against Ukraine to be in line with the State Aid Temporary Crisis Framework, adopted by the Commission on 23 March 2022 and amended on 20 July 2022 and on 28 October 2022.

The Commission approved the original scheme on 11 August 2022 (SA.103569). Under the scheme, the aid takes the form of:

(i) limited amounts of aid to address current liquidity shortage; and

(ii) aid for the additional costs that the eligible beneficiaries incurred due to exceptionally severe increases in natural gas and electricity prices.

Ireland notified the following modifications to the existing scheme: (i) an overall budget increase by €200 million; (ii) an extension of the period, in relation to which aid may be granted, until 31 December 2023; (iii) an increase of the maximum aid ceilings in line with the Temporary Crisis Framework as amended on 28 October 2022; and (iv) an adjustment of the eligibility conditions for the second measure, to include also non-energy-intensive companies.

The Commission found that the Irish scheme, as amended, continues to be in line with the conditions set out in the Temporary Crisis Framework. In particular, (i) the individual aid amount will not exceed €2 million for limited amounts of aid and €4 million for aid for additional costs due to exceptionally severe increases in natural gas and electricity prices; and (ii) the support will be granted before 31 December 2023. The Commission concluded that the modified scheme remains 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 amendments under EU State aid rules.

More information on the Temporary Crisis Framework and other actions taken by the Commission to address the economic impact of Russia's war against Ukraine can be found here. The non-confidential version of the decision will be made available under the number SA.105276 in the State aid register on the Commission's competition website once any confidentiality issues have been resolved.