The European Commission takes note of today’s judgment of the Court of Justice of the European Union in case C-173/25 P, upholding the 2024 order of the General Court (in case T-716/22) and thus the 2020 Commission negative State aid decision in this case. In its 2020 decision, the Commission had found that the implementation of the Madeira Free Zone aid scheme (Regime III) in Portugal was not in line with the Commission's approval State aid decisions of 2007 and 2013. The objective of the scheme, as approved by the Commission, was to contribute to the economic development of the outermost region of Madeira through tax incentives for companies creating jobs in Madeira and for activities effectively and materially performed in that region.
In its 2020 decision, the Commission found that the scheme had been implemented in breach of the criteria set out in the initial decisions approving it. That finding was upheld by the General Court in approximately 50 cases brought against the 2020 decision, including in case T-716/22. Today’s judgment by the Court of Justice upheld the General Court’s ruling in this latter case.
This judgment is consistent with the Court of Justice ’s rulings in other appeal cases related to the 2020 decision, especially those brought by Portugal (Case C-736/22 P) and the region of Madeira (Case C-547/23P).
State aid
The European Commission has concluded that Poland's plan to support the extension of capacity of a factory of truck producer MAN Trucks Sp. z o. o. in Niepołomice in the Małopolskie region is not in line with EU State aid rules. Therefore, Poland cannot disburse the aid.
The European Commission has approved a €170 million Bulgarian State aid scheme for farmers facing increased fuel and fertiliser prices due to the Middle East crisis.
The scheme was approved under the Middle East Crisis Temporary State Aid Framework (METSAF) adopted by the Commission on 29 April 2026.
The Commission takes note of the preliminary ruling by the Court of Justice concerning the interpretation of Article 107(3), point (c), TFEU and, in particular, the notion of ‘undertaking in difficulty’ according to point 20(c) of the Commission Guidelines on State aid for rescuing and restructuring non-financial undertakings in difficulty (R&R Guidelines).
The Court clarified that those provisions do not prevent national rules from excluding companies in extraordinary administration under Italian law from receiving aid for companies with high natural gas and electricity consumption.
The judgment also clarifies that the concept of ‘undertakings in difficulty’ under the R&R Guidelines includes undertakings subject to insolvency proceedings that are aimed at their restructuring with a view to ensure their long-term viability, rather than only those subject to insolvency proceedings aimed at liquidation.
In particular, the Court of Justice clarified that, since the undertaking concerned must be declared insolvent by the competent national court in order to be placed in extraordinary administration, such an undertaking is in difficulty within the meaning of the R&R Guidelines on the account of its insolvency having been declared.
See also Curia's press release (in PDF format).
The European Commission has approved a €52 million (RON 277 million) Romanian State aid scheme for cattle farmers facing increased fuel and fertiliser prices due to the Middle East crisis.
The scheme was approved under the Middle East Crisis Temporary State Aid Framework (METSAF) adopted by the Commission on 29 April 2026.
The Commission takes note of today’s judgment of the Court of Justice of the European Union, which dismissed BdM Banca’s claim for damages against the Commission following the Commission’s 2015 State aid decision in the Tercas case.
The case has its origin in a 2015 State aid decision. In that decision, the Commission had declared the financial support by the Italian Fondo Interbancario di Tutela dei Depositi (FITD) to Banca Tercas as imputable to the Italian State and as unlawful, incompatible State aid to be recovered. That decision was later annulled by the EU Courts. BdM Banca, which acquired Banca Tercas, claimed to have suffered damage due to that decision because of customers losing confidence in the bank. Its action for non-contractual liability against the Commission was dismissed by the General Court in 2023.
In today’s judgment, the Court of Justice confirmed the General Court’s view that part of the alleged damage was time-barred and that the applicant failed to prove a sufficient causal link between the Commission decision and the alleged damage. The Court of Justice, however, set aside the General Court’s judgment in part, holding that – unlike the General Court had decided – the Commission’s State aid decision entailed a sufficiently serious breach of EU law to establish non-contractual liability of the Commission. Nevertheless, given that the requirements to engage such liability are cumulative and that the requirement of a direct causal link was not established, the Commission was not found liable for the alleged damage. The appellant’s action was therefore dismissed.
The European Commission has approved, under EU State aid rules, a capacity mechanism for Germany available from 2031. This measure, with an estimated cost between €15.6 billion and €35.2 billion, aims to ensure sufficient capacity to produce, store or flexibly consume electricity, so that electricity production can consistently meet expected demand. Capacity mechanisms can play an important role ensuring security of supply as part of the transition to a decarbonised electricity system, and the measure includes requirements that will support climate neutrality by 2045 at the latest.
The European Commission has approved a €30 million State aid scheme for agricultural, fishery and aquaculture companies facing increased fuel and fertiliser prices due to the Middle East crisis. The scheme was approved under the Middle East Crisis Temporary State Aid Framework (METSAF) adopted by the Commission on 29 April 2026.
The European Commission has approved a €4.5 million German State aid scheme for fishing and aquaculture companies facing increased fuel prices due to the Middle East crisis. The scheme was approved under the Middle East Crisis Temporary State Aid Framework (METSAF) adopted by the Commission on 29 April 2026.
The European Commission has opened an in-depth investigation to assess whether an arbitration award ordering Spain to pay compensation to JGC Holdings Corporation (‘JGC') for changes to a renewable electricity support measure is in line with EU State aid rules.
The European Commission has approved a €59 million Slovenian State aid scheme to promote battery energy storage systems, in line with the objectives of the Clean Industrial Deal. This measure will contribute to the transition towards a net-zero economy. The scheme was approved under the Clean Industrial Deal State Aid Framework (CISAF) adopted by the Commission on 25 June 2025.
The European Commission has approved, under EU State aid rules, two Dutch schemes with a combined budget of €290 million to support sustainable aviation fuels ('SAF'). The schemes will contribute to the objectives of the Clean Industrial Deal to accelerate the decarbonisation of EU industry, as well as of the ReFuelEU Aviation Regulation to boost the supply and demand of SAF and accelerate the transition to climate-neutral aviation.
The European Commission has opened an in-depth investigation to assess whether an arbitration award ordering Romania to pay compensation to ten investors for changes to a renewable electricity support measure is in line with EU State aid rules.
The European Commission has approved a €149 million (SEK 1.6 billion) State aid scheme for agricultural, fishing and aquaculture companies facing increased fuel and fertiliser prices due to the Middle East crisis.
The scheme was approved under the Middle East Crisis Temporary State Aid Framework (METSAF) adopted by the Commission on 29 April 2026.
The European Commission has launched a public consultation inviting all interested parties to comment on its proposal to amend the Guidelines on regional State aid to keep them up-to-date.
The Commission welcomes feedback from all interested stakeholders, in particular national and regional authorities that grant aid. Interested parties are invited to respond to the public consultation on the draft Guidelines by 30 September 2026.
New guidance from the European Commission shows how State aid rules allow EU Member States to provide social support and social investment. This guidance assists Member States in designing State aid measures for social support and social investment, as set out in the Clean Industrial Deal.
The European Commission has launched a public consultation on the draft of new Guidelines on State aid for rescuing and restructuring non-financial undertakings in difficulty ('Rescue and Restructuring Guidelines'). The new version will align the existing Guidelines with current social, market and technological conditions. The Commission invites Member States and all other interested parties to comment on the draft by 4 September 2026
The European Commission has approved a €54 million Luxembourgish State aid scheme to support road transport and rail freight companies facing increased fuel prices due to the Middle East crisis.
The scheme was approved under the Middle East Crisis Temporary State Aid Framework (METSAF) adopted by the Commission on 29 April 2026.
The Guidelines on State aid for rescuing and restructuring non-financial undertakings in difficulty set out the conditions under which aid to non-financial undertakings in difficulty may be considered compatible with the internal market and State aid rules, in particular on the basis of Article 107(3)(c) of the Treaty on the Functioning of the European Union.
Following a broad public consultation and call for evidence in 2025, the Commission has reviewed the Rescue and Restructuring Guidelines with the aim to modernise them, reflecting today's changed economic context, to ensure that they remain fit to meet their objectives.
The Commission is now seeking stakeholder views on the this draft of new Rescue and Restructuring Guidelines.
See also the Commission's press release.
The European Commission has approved, under EU State aid rules, Czechia's market-wide capacity mechanism. The measure aims to ensure there is sufficient capacity to produce or store electricity, or to reduce electricity consumption so that production meets demand in the long term. It is the first capacity mechanism approved under the Clean Industrial Deal State Aid Framework (CISAF) adopted by the Commission on 25 June 2025.