ARTICLE
16 May 2025

State Aid - Horizon Scanner Infrastructure, Construction, Energy: May 2025

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Arthur Cox

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The European Commission approved €321.3 million in restructuring aid granted by Germany to Condor to enable its return to viability.
Ireland Energy and Natural Resources

APPROVAL OF CONDOR RESTRUCTURING AID

The European Commission approved €321.3 million in restructuring aid granted by Germany to Condor to enable its return to viability. This plan was annulled by the General Court on 8 May 2024, on the grounds that the Commission had not assessed whether Germany received sufficient remuneration for the debt write-offs granted. Upon reassessment, the Commission found that Condor is implementing comprehensive restructuring measures to ensure long-term viability, and the aid is accompanied by sufficient safeguards to limit competition distortions in internal markets. Condor filed for insolvency in 2019 due to the liquidation of its parent company, Thomas Cook Group.

SUPPORT SCHEME FOR ENERGY-INTENSIVE COMPANIES

The European Commission approved a €612 million Portuguese state aid scheme to lower electricity levy rates for energy-intensive companies. The scheme, which will run until April 2035, aims to prevent companies from relocating outside the EU to avoid ambitious climate policies. Businesses consuming large amounts of energy as part of core production processes will receive a levy reduction of 75% to 85%, depending on risk exposure. Beneficiaries must implement energy audits, use renewable energy, and invest in emission reduction projects. The Commission found the scheme's positive effects outweigh any potential negative impacts on EU competition and trade.

SUPPORT SCHEME FOR RENEWABLE HYDROGEN PRODUCTION

The European Commission has approved, under EU State aid rules, a €400 million Spanish State aid scheme to support the production of renewable hydrogen. The Commission states that the scheme will contribute to the objectives of the Clean Industrial Deal to accelerate the decarbonisation of EU industry while strengthening its competitiveness, to the REPowerEU Plan to reduce dependence on Russian fossil fuels and accelerate the green transition, and to the EU Hydrogen Strategy. The Commission found that the scheme was necessary and appropriate to facilitate the production of renewable hydrogen, had an incentive effect, and would have limited impact on competition and trade.

This article contains a general summary of developments and is not a complete or definitive statement of the law. Specific legal advice should be obtained where appropriate.

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