EU countries should make “maximum use” of cohesion funds to counter the bloc’s ongoing energy crisis, Raffaele Fitto, the EU’s cohesion commissioner, said on Thursday.
The call comes as capitals have been battling with the economic fallout of the Iran war and the closure of the Strait of Hormuz, which has severely disrupted crucial supply chains for oil and gas.
Fitto urged ministers to “make maximum use of all available cohesion policy funds… for energy-related investments that can deliver quick impact and alleviate… rising energy prices”, according to a letter seen by Euractiv.
The funds are designed to help poorer countries and regions across the bloc.
Fitto also added that member countries should “accelerate the pace of implementation” of the Just Transition Fund, part of the EU’s broader cohesion policy, which supports regions most exposed to the social and economic costs of the transition to climate neutrality.
Short-term acceleration could be achieved through the creation of new financial instruments or “further use of financing not linked to costs”, he said.
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Fitto reminded countries that unspent allocations of the fund that stem from the NextGenerationEU recovery fund are at risk of being “lost”, as the Commission must make all related payments by 31 December 2026.
Besides the Just Transition Fund, other cohesion funds, such as the European Regional Development Fund, could also be reallocated towards energy-related investment.
Through the recent mid-term review of cohesion policy for the 2021-2027 budget cycle, EU countries and regions have reallocated €34.6 billion to new priorities such as defence and security, and €1.2 billion to the green transition.
Nicoletta Ionta contributed reporting.
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