Nicosia: The European Commission has given the green light to a £4.5 million German State aid scheme targeting fishing and aquaculture companies grappling with increased fuel prices due to the ongoing Middle East crisis. This initiative falls under the Middle East Crisis Temporary State Aid Framework (METSAF) established by the Commission on April 29, 2026.
According to Cyprus News Agency, the aid will be distributed as direct grants, designed to cover 70% of the estimated fuel cost increase for the affected companies between March 1 and July 23, 2026. Each company will receive no more than £50,000. The Commission has evaluated the scheme in line with EU State aid regulations, particularly Article 107(3)(c) of the Treaty on the Functioning of the EU, which permits Member States to support the development of specific economic activities under certain conditions, as stipulated in Sections 1 and 2.1 of the METSAF.
The Commission determined that the scheme adheres to the METSAF conditions, offering aid through a clearly defined budget to temporarily bolster companies engaged in the primary production of fishery and aquaculture products. It concluded that the scheme is essential, suitable, and proportionate for facilitating economic activity development without adversely affecting trade conditions contrary to the common interest. A press release detailing the Commission's decision is available online.