The European Commission has approved a €30 million Portuguese support scheme designed to help agricultural, fishing and aquaculture businesses cope with a sharp rise
in fuel and fertiliser costs linked to the crisis in the Middle East.
The measure, which will remain available until the end of 2026, was cleared under the Commission’s Middle East Crisis Temporary State Aid Framework (METSAF), introduced in April to give EU governments greater flexibility to protect sectors particularly exposed to energy and commodity price shocks.
Direct payments for affected businesses
The Portuguese scheme targets companies involved in the primary production of agricultural, fishery and aquaculture products. Support will be provided through direct grants, with the amount linked to the increase in fuel and fertiliser costs.
Individual companies can receive up to €50,000.
For agricultural businesses, fertiliser support will be calculated using a simplified formula that takes into account the size of the company’s cultivated land and the number of animals it keeps.
The fuel component is based on actual consumption. Eligible businesses will receive €0.10 per litre of agricultural or marine diesel used between 1 April and 30 June 2026.
The Portuguese authorities notified the scheme to Brussels as a temporary measure intended to cushion businesses from the immediate financial effects of higher operating costs.
Commission says aid is proportionate
The Commission assessed the package under EU State aid rules, including Article 107(3)(c) of the Treaty on the Functioning of the European Union and the relevant provisions of METSAF.
Brussels concluded that the Portuguese scheme meets the framework’s requirements. In particular, the Commission found that the programme has a defined budget, is temporary and is directed at businesses operating in sectors considered especially vulnerable to the current crisis.
The Commission said the support is necessary, appropriate and proportionate to help maintain economic activity without creating an undue distortion of competition or harming trading conditions within the EU.
The approval allows Portugal to begin implementing the €30 million programme.
EU response to Middle East economic fallout
The decision is part of a wider EU effort to shield vulnerable industries from the economic consequences of the Middle East crisis.
The Commission adopted METSAF on 29 April 2026, creating a temporary framework under which member states can provide targeted assistance to sectors facing exceptional pressures. The framework currently covers agriculture, fisheries, transport and energy-intensive industries and is due to expire on 31 December 2026.
Among the measures permitted under the framework are support based on actual fuel or fertiliser consumption, as well as simplified assistance for smaller amounts.
The Commission has stressed that the framework is intended as a short-term response rather than a replacement for the EU's longer-term strategy of reducing dependence on volatile fossil-fuel markets.
A separate temporary adjustment to the Clean Industrial Deal State aid Framework also gives governments greater flexibility to respond to sharp increases in electricity prices, including through higher aid intensities in certain circumstances.
Brussels said it would continue to monitor developments in the Middle East and broader economic conditions and could review the scope or duration of METSAF if circumstances change.
The Portuguese decision has been registered under State aid case SA.124487. A non-confidential version will be published in the Commission’s State aid register. Photo by Alvesgaspar, Wikimedia commons.