CISAF, the newest framework, may not be the final one, as the Commission can continually expand its state aid policy objectives as long as they align with the Union’s interests, according to Adina Claici, an economist at the Berkeley Research Group and former official at the competition directorate’s chief economist team.
The latest framework is a careful balance between the urgent need for a Union-wide industrial policy and the foundational rules of its single market.
It aims to streamline and expedite support approval for clean tech and decarbonization projects while maintaining essential safeguards for all state aid measures, such as the incentive effect and ensuring support is proportionate and necessary, stated Katarzyna Berestecka, an antitrust lawyer at Norton Rose Fulbright.
Safeguards include spending caps for EU countries and the addition of conditionality clauses. For instance, the electricity price clause mandates that companies receiving energy bill relief invest 50 percent of the aid into decarbonization projects.
CISAF’s practical effectiveness will be tested when funding proposals are reviewed by competition officials, particularly for larger projects. “The Commission risks facing court appeals from competitors not receiving aid, so the stakes are high,” Claici noted.
Nicolas Camut contributed to this report.
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