The European Commission has approved a €54 million Luxembourgish State aid scheme to support road transport and rail freight companies facing increased fuel prices due to the Middle East crisis.
The scheme was approved under the Middle East Crisis Temporary State Aid Framework (METSAF) adopted by the Commission on 29 April 2026.
The Luxembourgish scheme
Luxembourg notified to the Commission a €54 million scheme to support companies active in the road and rail freight transport sectors. The scheme aims to mitigate the impact of the increase in fuel prices resulting from the Middle East crisis.
The aid will take the form of direct grants. The aid can cover up to 70% of the additional fuel costs resulting from the Middle East crisis incurred between 1 March and 31 December 2026.
The Commission assessed the scheme under EU State aid rules, in particular Article 107(3)(c) of the Treaty on the Functioning of the EU, which enables Member States to support the development of certain economic activities subject to certain conditions, as well as Sections 1 and 2.2 of the METSAF.
The Commission found that the scheme is in line with the conditions set out in the METSAF. In particular, aid will be granted based on a scheme with a clear estimated budget, and aid will be provided to temporarily support the development of companies active in the road and rail freight transport sectors. The Commission concluded that the scheme is necessary, appropriate and proportionate to facilitate the development of an economic activity and does not adversely affect trading conditions to an extent contrary to the common interest.
On this basis, the Commission approved the Luxembourgish scheme under EU State aid rules.
Background
On 29 April 2026, the Commission adopted the METSAF to enable Member States to support the EU economy in the context of the Middle East crisis. The METSAF is a targeted and temporary framework to address the effects of the crisis on some of the most exposed sectors of the economy: agriculture, fishery, transport and energy-intensive industries. The METSAF will be in place until 31 December 2026. During its period of application, the Commission will keep the content, scope and duration of the framework under review in the light of developments in the Middle East and of the general economic situation.
While the transition towards a clean economy remains the long-term solution to shield EU companies from the effects of global energy shocks, the METSAF allows Member States to act immediately to make sure that the growth of the most exposed companies is not irreparably hampered by the current crisis.
To this end, support can take various forms for companies active in the agriculture, fishery and transport sectors. This includes aid based on actual consumption to cover part of the price increases for fuel or fertilisers, and a simplified approach for small amounts of aid.
The METSAF also includes a temporary adjustment to the Clean Industrial Deal State aid Framework allowing for further flexibility and higher aid intensities to address electricity price spikes.
(European Commission)
