EU countries cut state aid by €35b as crisis schemes phase out

EU countries cut state aid by €35b as crisis schemes phase out
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EU countries cut overall state aid spending to €168.23 billion in 2024 from €203.35 billion in 2023, while directing 90% of that support towards EU policy priorities.

Most of the money targeted areas such as environmental protection, energy, research, innovation and regional development, while crisis schemes linked to the Covid-19 pandemic and Russia’s invasion of Ukraine continued to be phased out, the European Commission announced on Thursday.

Spending on environmental protection and energy savings totalled €68.82 billion, accounting for 45% of all state aid directed at EU priorities.

Within that category, €30.45 billion went to decarbonisation, while €27.31 billion was paid for energy production and infrastructure modernisation.

Member states also spent €14.16 billion on research, development and innovation and €13.42 billion on regional development in 2024.

Crisis support falls as energy and industrial measures continue

Total crisis aid expenditure dropped to €16.33 billion in 2024, down 67% from the year before, with most of it focused on impacts linked to Russia’s invasion of Ukraine, according to the Commission.

Separately, €3.84 billion was channelled through the EU’s Temporary Crisis and Transition Framework — a set of rules that allows governments to support businesses during exceptional disruptions while shifting towards longer-term investments — with support focused on renewable energy rollout, industrial decarbonisation and strategic sector investments.

Two semiconductor manufacturing facility projects received state aid, with €352.85 million paid out in 2024 following €223.87 million in 2023.

Aid for broadband rollout came to €4.59 billion in 2024.

Agriculture, forestry and rural areas received €10.43 billion, while fisheries and aquaculture got €212.87 million.


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