COHESION POLICY TO HELP HOUSEHOLDS AND SMES AFFECTED BY THE CRISIS
EU member states will be able to use up to EUR 40 billion to help small and medium-sized enterprises and vulnerable household fighting rising energy prices and inflation. Younous Omarjee, Chair of the Regional Development Committee (REGI) and Elisa Ferreira, EU Commissioner for Cohesion and Reforms, announced today that up to 10% of national envelopes from Cohesion funds from the programming period 2014-2020 could be allocated to fight energy poverty with 100% EU financing. It represents up to EUR 40 billion of possible direct funding to SMEs and households.
This announcement came following a letter suggestion by REGI Chair Omarjee to the President of the European Commission Von Der Leyen to use unused 2014-2020 funds for this purpose. REGI Committee´s position on the REPowerEU proposal complements this suggestion and urge mobilisation of Cohesion policy funds to help vulnerable households and SMEs to cope with energy costs and inflation.
This initiative will be translated into amendments to the REPowerEU proposal, which aims to help member states become independent from Russian fossil fuels. It also aims to help EU countries and regions through a series of targeted and exceptional measures to face the challenges resulting from the current energy crisis. It will provide support to SMEs particularly affected by the increase in energy prices in line with the state aid rules and it will also help address energy poverty by supporting vulnerable households and enhancing access to the labour market through schemes such as short-time work.
Quotes
Chair of the Regional Development Committee Younous Omarjee said: “Facing the energy crisis and inflation, we cannot remain the weapon at foot. This is why we are putting on the table this proposal, which allows 40 billion EUR of direct support to the most vulnerable families and small businesses to avoid a social disaster and an outbreak of bankruptcies. Our REGI Committee is glad that the European Commission has today adopted a position identical to the proposals we have made. I welcome the excellent collaboration that has enabled the European Commission and the Parliament to converge and make the proposal for this new reactive instrument. It’s a Europe of reality.”
Commissioner for Cohesion and Reforms Elisa Ferreira noted: “Cohesion Policy steps up as a first responder to support member states, regions and citizens in the face of the energy crisis. We were at the frontline in the Covid pandemic and in supporting the sheltering of millions of Ukrainian refugees. We are now providing the means for member states to help families and SMEs most affected by the increase in energy prices. EU-wide responses are crucial to deliver solidarity and preserve our internal market. In the face of external aggressions, our internal cohesion remains our best asset.”
Background
In light of Russia´s invasion of Ukraine, the Commission proposed on 8 March 2022 a plan to make Europe independent from Russian fossil fuels before 2030. This plan known as REPower EU also outlines a series of measures to respond to rising energy prices in Europe and to replenish gas stocks for next winter. The European Parliament is expected to vote on REPowerEU proposals at the November plenary.
