Hungary's room for maneuver regarding energy has increased significantly since 2010, as domestic gas and electricity interconnections with neighboring countries have been greatly expanded.Continue reading
The European Commission has approved a 1-billion-euro (approximately 379 billion forints) Hungarian scheme to support companies facing increased energy costs in the context of Russia’s war against Ukraine, the Brussels body announced on Thursday.
It was approved under the State Aid Temporary Crisis and Transition Framework, adopted by the Commission on March 9, 2023, to support measures in sectors that are key to accelerating the green transition and reducing fuel dependencies.
The scheme consists of aid for additional costs due to exceptional energy price increases and will take the form of loans and guarantees.
According to the Commission’s statement, the measure will be open to companies of all sizes and sectors, with the exception of the financial sector as well as sectors that are considered to be potentially harmful to the environment; its purpose is to cover part of the increased costs of natural gas and electricity as well as of heating and cooling directly produced from the latter.
The Commission concluded that the Hungarian scheme is necessary, appropriate, and proportionate to remedy a serious disturbance in the economy of a member state.
Featured photo via the European Commission