The European Commission has approved a 1 billion euro (about HUF 379 billion) Hungarian program to support businesses facing increased energy costs in connection with Russia's war against Ukraine, the Brussels body informed on Thursday.

It was announced: the Hungarian program was approved on the basis of the so-called temporary crisis and transition framework adopted on March 9, which aims to support measures taken in key sectors in terms of accelerating the green transition and reducing dependence on fossil fuels.

The new framework modifies and partially extends the temporary crisis framework for state aid, adopted on March 23, 2022 and subsequently amended, which enabled member states to support their economies in the current geopolitical crisis.

Regarding the Hungarian measure, the announcement reminded:

the aim of the program is to cover part of the increased costs of natural gas and electricity, as well as heating and cooling produced by the direct use of the latter.

The program consists of support for additional costs due to extraordinary energy price increases and is implemented in the form of loans and guarantees. With the exception of the financial sector and sectors considered potentially harmful to the environment, the measure is open to all companies, regardless of size and sector.

In its statement of reasons, the European Commission stated: the board found that the Hungarian program is in line with the conditions defined in the temporary crisis and transition framework. The measure is necessary, appropriate and proportionate to eliminate the serious disturbance in the economy of the concerned member state, they wrote.

They were also informed: the total support per beneficiary cannot exceed 50 percent of the eligible costs and can amount to a maximum of 4 million euros. Beneficiaries may receive additional support, not exceeding 40 percent of eligible costs and up to 100 million euros. Energy-intensive enterprises can receive support up to 65 percent of the eligible costs, the upper limit of which is 50 million euros.

In addition, energy-intensive enterprises operating in particularly affected sectors are entitled to support corresponding to a maximum of 80 percent of the eligible costs, up to a maximum support limit of 150 million euros. The support will be provided until December 31, 2023, the EU committee informed.

Source: MTI