Brussels gives green light to billion-euro aid for industry in Germany, Bulgaria and Slovenia

The European Commission (EC) has approved support for industry in Germany, Bulgaria and Slovenia. Germany can support its businesses with 3.8 billion euros (92.5 billion Kč), Bulgaria with 334 million euros (8.1 billion Kč) and Slovenia with 90 million euros (2.2 billion Kč), in order to temporarily reduce electricity prices in energy-intensive sectors. The EU executive said this today in a press release.

Last year, Brussels adopted a state aid mechanism (CISAF) under the so-called Clean Industrial Deal. According to the EC, its aim is to accelerate development in clean energy, industrial decarbonisation and clean technologies.

"The aim of these schemes is to support energy-intensive businesses by reimbursing part of their electricity costs over the next three years. The measures will be aimed at businesses in sectors where there is a significant risk of operations relocating outside the EU to locations where environmental measures are absent or less ambitious," the Commission said.

According to Brussels, the risk of relocation outside the EU depends on a sector's energy intensity and its exposure to international trade.

In Germany and Slovenia, the support covers the period from January 1 this year to December 31, 2028; in Bulgaria, it covers the period from July 1 last year to June 31, 2028. According to the EC, the approved schemes are necessary and proportionate to accelerate the transition to a zero-emission economy and support the development of economic activities important for implementing the Clean Industrial Deal.

Recipients of support under CISAF are required to invest in the so-called green transition. They must spend at least half of the amount received on these investments. These may include, for example, developing renewable energy generation capacity, energy storage solutions or measures to improve energy efficiency.