The EU is preparing a toolkit for member states to ease the economic impacts of the energy crisis. One of the ways is to make state aid rules more flexible to support the industries most affected by the crisis. INFRA ry, which represents the energy-intensive infrastructure sector in the Finnish Energy Council, reminds that Finland has good reasons to seize the support opportunity.
The Commission is preparing a toolkit for Member States to ease the energy price crisis caused by the situation in the Middle East and the Strait of Hormuz.
Demand management is still seen as important, but the focus is shifting to EU-level coordination of oil and gas reserves and to making state aid rules more flexible.
A condition for making support rules more flexible would be that support measures are targeted, rapid and temporary. They should protect sectors particularly affected by the crisis from price shocks.
"The government should take a positive stance on the budget debate"
The Commission is currently consulting Member States on a rapid timetable for a temporary crisis framework to ease state aid rules, with the aim of having the framework in force as early as April.
The framework would enable temporary and targeted support that could cover some of the fuel cost increases and electricity price spikes. The aim is to safeguard businesses' operations and supply chains.
"In Finland, business organizations have taken a stand to initiate support measures. The price shock has hit the construction machinery industry particularly hard. If the situation continues, it could start to erode Finland's security of supply," INFRA CEO Paavo Syrjö stress.
Read the previous press release from INFRA and other organizations.
The currently planned support would be implemented mainly at the national level. Some member states have already seized the opportunity and it is expected that many of Finland's competitor countries will implement fuel support in the future.
"Our government should also take a positive stance in the budget debate. Finland, with its long distances and renewable energy, cannot survive without a resilient infrastructure sector, which has been one of the biggest victims of the crisis."
Investments also in energy infrastructure
The structural solution to the energy crisis is to move away from fossil fuels. Key long-term actions include strengthening the role of renewable energy and nuclear power, accelerating electrification, and developing energy infrastructure.
Member States are also encouraged to make full use of EU funding to accelerate these investments.
Background
- The rise in energy and oil prices due to the situation in the Middle East and the Strait of Hormuz has been a topic of discussion in the EU for weeks.
- According to the Commission, the fossil fuel import bill increased by more than EUR 22 billion in 1,5 months. The situation is seen as long-term; even if the war ends quickly, the destruction of energy infrastructure and market effects will continue for a long time.
- The impacts are particularly directed at energy-intensive industries, such as the infrastructure sector based on heavy machinery.
Additional information:
INFRA ry, CEO Paavo Syrjö, tel. +358 40 560 1803
paavo.syrjo@infra.fi