Dáil Éireann Debate, Wednesday - 13 December 2023
84. Deputy Colm Burke asked the Minister for Enterprise, Trade and Employment the Government’s response to the European Commission proposal to extend the crisis element of the Temporary Crisis and Transition Framework to 31 March 2024, at the request of the German and French governments. [55464/23]
View answerIreland has always been a strong supporter of robust State Aid control at EU level to protect a level playing field for Irish businesses to compete in the EU. In order to maintain a level playing field, any flexibility in State Aid rules must be limited to what is strictly necessary and be provided in a way that benefits all Member States equally. It is important that we avoid a damaging subsidy race.
To enable Member States to provide State Aid in response to the energy cost crisis triggered by the war in Ukraine, the EU Commission introduced flexibility with State Aid rules to enable temporary, targeted and limited State Aid to support businesses impacted by the energy crisis.
Since these rule changes were first proposed, the Government has engaged with the EU Commission and other Member States to express our concerns and to call for safeguards, including time limits, to be attached to any new measures.
A continuation of the temporary and exceptional crisis measures risks distorting the level playing field in favour of the larger Member States and making it harder for Irish businesses to compete in the EU.
My Department has worked closely with several other Member States and presented our concerns in a Joint Statement to the EU Commission regarding the proposed extension of the exceptional crisis element of the Temporary Crisis and Transition Framework beyond the expected expiry date of 31 December 2023.
In Ireland, the schemes under the Temporary Crisis and Transition Framework, and those administered under other parts of the broader State Aid framework, have reached many Irish businesses, and have provided timely and effective support when required. The Government is committed to providing necessary supports to businesses and the general State Aid rules provide ample opportunities to achieve this.
