EU Cohesion Funds Become Flashpoint in Energy Crisis Response as Regions Push Back

The Commission's proposal

European Commission Executive Vice-President Raffaele Fitto has formally written to all 27 EU member states, urging them to urgently mobilize existing cohesion policy resources to counter the ongoing energy crisis. In a three-page letter, Fitto identified three specific funds that can be tapped: the general Cohesion Fund, the European Regional Development Fund (ERDF), and the Just Transition Fund (JTF).

Let us urgently use all available tools: the Union has the resources to respond and we must mobilize them now.

Fitto emphasized that this is not about new money, but about reprogramming existing allocations. He pointed to the mid-term review of cohesion policy, which saw €34.6 billion redirected toward competitiveness, defense, housing, water, and energy, as proof that such flexibility is both possible and rapid. The letter also outlines concrete actions, including creating new financial instruments to advance payments and adopting necessary programmatic adjustments.

Regional backlash

Almost immediately, the proposal drew sharp criticism from regional representatives. Kata Tutto, President of the European Committee of the Regions, published a scathing post on X, accusing the Commission of undermining long-term investment policy.

Pointing to cohesion funds as an emergency ATM, once again, turns investment policy into a political aspirin: temporary relief, chronic underinvestment.

Tutto argued that these funds are already committed and that cohesion policy has been instrumental in improving the EU's energy resilience and sustainability. She ended her message with a sarcastic remark that the just transition should "rest in peace." Fitto fired back on social media, insisting that the initiative is about flexibility that regions themselves had requested, and that Brussels is not forcing anyone to participate.

The funds at stake

The three instruments represent a massive financial backbone for the EU. For the 2021-2027 cycle, cohesion policy mobilizes approximately €392 billion. The ERDF alone accounts for roughly €226 billion, financing infrastructure, digitalization, SME support, and green transition projects. The Cohesion Fund, reserved for member states with a gross national income below 90% of the EU average, is worth about €42.6 billion and targets major transport and environmental networks. The JTF, created in 2021 with around €19.2 billion, supports regions heavily dependent on coal, steel, and high-emission industries.

Political reactions in Italy

The proposal has also ignited a political debate in Italy. Valentina Palmisano, a Member of the European Parliament for the Five Star Movement, called Fitto's letter an admission of defeat for Prime Minister Giorgia Meloni. Palmisano claimed that Brussels is offering a consolation prize while closing the door on Italy's core request to exclude energy spending from the Stability Pact calculations.

No new or additional resources are being allocated, but funds that already belong to Italy are being made available and will now be taken away from the regions for transport, active labor policies, and the construction of nurseries.

She challenged center-right regional governors to return to Brussels and protest against Fitto, positioning her party on the side of local authorities.

What the funds can finance

Fitto's communication, based on the AcceleratorEU framework, details specific eligible measures. Member states can expand existing support for households and businesses to cushion energy price hikes, improve energy efficiency in public buildings like schools and museums, accelerate clean energy deployment, and invest in sustainable mobility. The plan also includes a fertilizer action component, supporting the development of wastewater treatment plants, organic and bio-based fertilizer production, and boosting SME competitiveness in the fertilizer sector.