On 29 April 2026, the European Commission (“Commission”) adopted its Communication establishing the “Middle East Crisis Temporary State Aid Framework” (“METSAF”). The Communication introduces a new State aid framework to mitigate the consequences of the energy price spikes and supply chain disruptions caused by the ongoing hostilities in Iran and the wider region, and the closure of the Strait of Hormuz (the “Middle East Crisis”). The framework applies from 1 March 2026 to 31 December 2026.

Key takeaways

• The METSAF is a temporary instrument that makes State aid rules more flexible with the aim of counterbalancing the ongoing energy price spikes due to the Middle East Crisis.
• Under the METSAF, Member States may exceptionally seek the Commission’s approval to partially compensate companies active in the land transport (rail, road and inland waterways), intra-EU short sea shipping services, agriculture, fisheries and aquaculture sectors to cover extra-costs of fuel or fertilisers incurred due to the Middle East Crisis.
• Additionally, the METSAF allows Member States to increase the aid intensity of electricity price relief schemes for energy-intensive users under the Clean Industrial Deal State Aid Framework (“CISAF”) (see our previous blog).