ABSTRACT – On 1st February 2023, the European Commission presented the Green Deal Industrial Plan for the Net-Zero Age Deal, a new industrial plan whose objective is to strengthen the competitiveness of European industry and support the rapid transition to climate neutrality, while also counteracting non-EU competition. As EU industry’s market shares are under strong pressure, the second pillar of this plan is aimed at accelerating investment and funding for the development of sustainable technologies in Europe. Against this background, the Commission now intends to grant Member States further flexibility to provide aid limited to carefully defined areas and on a temporary basis (until end 2025). The aim of this contribution is to examine this last aspect, namely the draft proposal – sent to Member States for consultation – to transform the State aid Temporary Crisis Framework into a Temporary Crisis and Transition Framework. In particular, an attempt will be made to assess, in the light of the current State aid rules, what consequences this proposal might have on the internal market.
