The European Union has announced emergency subsidies covering up to 70% of additional fuel and fertiliser costs for farmers, fishing businesses and road hauliers, caused by the ongoing war with Iran. Individual companies can claim up to €50,000 each until the end of the year with minimal paperwork, as part of a temporary state aid framework aimed at preventing an existential crisis in these sectors.
Energy-intensive industries such as steel, chemicals and rail firms will also be eligible for up to 70% of extra electricity costs. The measures were unveiled on Wednesday by European Commission Vice-President Teresa Ribera, who said they could mean the difference between 'survival or giving up' for many businesses.
Oil and gas prices surged after the US-Israeli war against Iran began in February, with fertiliser prices rising 61% in March alone due to supply disruptions from the Strait of Hormuz blockage. French oil giant TotalEnergies reported a 51% rise in net profit to $5.8bn in the first quarter, drawing criticism from politicians and campaigners who called for redistribution of what they termed 'war profits'.
The EU's Middle East Crisis Temporary State Aid Framework (METSAF) covers agriculture, fisheries, aquaculture, and transport sectors including road, rail, inland waterways and short sea shipping, but excludes airlines. Member states can tailor aid to local conditions, with small hauliers, farmers and fishers able to claim the fixed €50,000 without providing fuel receipts, despite fraud risks.
The framework runs until 31 December, reflecting assessments that oil and gas prices will remain high even if peace is reached soon. Energy Commissioner Dan Jørgensen warned the crisis could last up to two years. Ribera defended the subsidies as a short-term response, insisting the energy transition remains the best shield against future crises.
