France has been cleared by the European Commission to provide up to €40.5 million in state-backed loans to transport, agriculture, fishery and aquaculture companies facing higher fuel costs linked to the Middle East crisis.
The support is split into €23.3 million for transport firms and €17.2 million for agricultural, fishery and aquaculture businesses, the Commission reported on Friday.
The two schemes were approved under the Middle East Crisis Temporary State Aid Framework, a set of EU rules adopted on 29 April 2026 that allows member states to grant limited support to businesses affected by the crisis.
Companies can apply if fuel spending accounts for at least 5% of their annual turnover.
Aid will be delivered through “soft loans” — loans offered on favourable terms — with a fixed interest rate of 3.8% and backed by a state guarantee.
Eligible firms will be able to borrow between €5,000 and €50,000 for up to three years, including a 12-month deferral on repaying the principal.
How the EU assessed the French schemes
The Commission said it assessed the measures under EU state aid rules, including Article 107(3)(c) of the Treaty on the Functioning of the European Union, which allows certain types of support for economic activities under conditions set by EU law.
Non-confidential versions of the decisions are due to be published in the Commission’s state aid register under case numbers SA.124159 and SA.124290 once confidentiality issues have been resolved.
