Use cohesion funds for energy. Italy is aiming for 5 billion euros to be used immediately to help families and businesses affected by high energy costs. Faced with the hypothesis of a “no” to flexibility on the stability pact, Italy looks to plan B. The proposal comes from the vice president of the Commission Raffaele Fitto and indicates short research and response times.
The money could be taken from those projects that have not yet started, which are progressing slowly and which have not yet actually used the resources allocated to them. So even for stopped investments, a 5 billion euro tank could be reprogrammed to provide oxygen in times of crisis. However, it is unlikely that they can be used for fuel discounts, because this would conflict with Europe’s green objectives.
Use the Energy Sector Investment Fund
The European Commission has called on Member States to use available financial instruments to support families and businesses. In a letter sent by Raffaele Fitto, Executive Vice President for Cohesion and Reforms, to EU ministers, the Commission explains that member states can accelerate the use of the Just Transition Fund through several measures.
They can also reallocate cohesion policy funds (the Just Transition Fund, which supports the transition towards climate neutrality), such as the European Regional Development Fund, towards investments in the energy sector. However, remaining within the European framework of the Accelerate Eu strategy.
Fitto said:
We invite Member States and regions to undertake a reprogramming effort with a targeted focus on energy. The objective is clear: to rapidly redirect available cohesion resources towards investments capable of providing immediate relief to families and businesses affected by high energy prices.
5 billion tank: how they can be used
The reconnaissance on the resources should arrive shortly. Under the spotlight are projects that are progressing slowly, i.e. those that have not yet started work or that are only scheduled. The reservoir is 5 billion euros.
In about twenty days, maximum thirty, the Commission says, the real amount of resources to be reprogrammed will be available.
These can be used for:
- incentives for vulnerable families to replace boilers;
- energy vouchers for families with low incomes
- social tariffs for those in conditions of energy poverty
For businesses, however, we are thinking about energy efficiency and clean technologies. However, they certainly cannot be used to overcome expensive fuel.
Discounts on diesel and petrol remain borne by the State, because the fund’s resources are aimed at the transition and fossil fuels are incompatible with European green objectives.
Regions not happy
The regions do not like the decision. The European Committee of the Regions, through its president Kata Tüttő, announced:
The energy crisis is real, the proposed solution is not. Pointing to cohesion funds as an emergency ATM once again turns investment policy into political aspirin: temporary relief, chronic underinvestment.
However, Fitto does not agree and says he is “surprised”. He responds directly that the regions have requested flexibility: “Brussels does not oblige anyone: States and Regions decide on the basis of the real needs of the territories”.
