European Commission approves €40.5 million aid for French businesses

The European Commission has approved €40.5 million in state aid for French companies in the transport, agriculture, fishing, and aquaculture sectors to mitigate rising fuel costs. The support is a response to economic pressures stemming from the crisis in the Middle East, particularly regarding energy supply and shipping costs.

The aid will be distributed through two specific schemes: €23.3 million is allocated to the transport sector, while €17.2 million is designated for agriculture, fisheries, and aquaculture. The assistance will be provided via state-guaranteed soft loans with a fixed interest rate of 3.8%.

Eligible businesses can borrow between €5,000 and €50,000 for a period of up to three years, with principal repayments deferred for the first 12 months. To qualify, companies must demonstrate that fuel costs account for at least 5% of their annual turnover. These measures fall under the Middle East Crisis Temporary State Aid Framework, which allows EU member states to assist sectors exposed to increased fuel and fertilizer costs.