EU Commissioner Fitto Urges Use of Cohesion Funds for Energy Crisis Amid Iran War
EU Cohesion Commissioner Raffaele Fitto urged member states to use cohesion funds to address the energy crisis, exacerbated by the Iran war and Strait of Hormuz closure. He emphasized accelerating investments and utilizing unspent funds by December 2026 to mitigate rising energy prices.
Raffaele Fitto, the EU’s cohesion commissioner, urged member countries on Thursday to make maximum use of cohesion funds to counter the bloc’s energy crisis. This call comes as capitals grapple with economic fallout from the Iran war and the closure of the Strait of Hormuz, which has disrupted oil and gas supply chains.
Fitto advised ministers to utilize all available cohesion policy funds for energy-related investments that can deliver quick impact and alleviate rising energy prices. He also stressed accelerating the implementation of the Just Transition Fund, which supports regions affected by the shift to climate neutrality. Short-term acceleration could involve new financial instruments or cost-unlinked financing.
Fitto reminded countries that unspent allocations from the NextGenerationEU recovery fund are at risk of being lost, as the Commission must make all related payments by December 31, 2026. Other cohesion funds, like the European Regional Development Fund, could also be reallocated for energy investments. During the 2021-2027 budget cycle's mid-term review, EU countries reallocated €34.6 billion to defence and security, and €1.2 billion to the green transition.