A government decision to freeze €200 million in EU cohesion funds has sparked backlash from Slovak municipalities, highlighting growing tensions over national control and local autonomy in regional development spending.
A midterm review of EU cohesion funding has triggered political friction in Slovakia after the government two weeks ago halted €200 million earmarked for regional projects chosen by local municipalities. The move follows a European Commission push to redirect some cohesion funds toward priorities such as defence and housing.
At a press conference with Minister for Investment and Regional Development Samuel Migaľ, Prime Minister Robert Fico defended the decision, suggesting the funds could be used for dual-use projects and hinting they might be used to help offset high energy prices. He also said he spoke to German Chancellor Friedrich Merz about the matter on Monday.
“I have spoken with him about the possibility of using the EU funds to compensate high energy prices,” Fico said, referring to his phone call with Merz.
Fico also warned that if the “hurtful and ideological proposal” to end Russian gas imports from 2028 onwards is adopted, Slovakia should prepare for a steep increase in energy prices.
According to a post on Fico´s social media, the conversation with Merz focused mainly on the condition under which the EU would halt the import of Russian gas.
“I appreciate constructive approach by the European Commission and the German chancellor towards the real Slovak problems,“ Fico wrote.
Fico, like Hungary’s Viktor Orbán, has opposed ending Russian energy imports and diverges sharply from most European leaders on the war in Ukraine. His government has also faced criticism for undermining democratic institutions in Slovakia.
Municipal governments reacted strongly and criticised the government for not consulting them before announcing the freeze.
The €200 million initially dedicated to municipality-led initiatives is now expected to be rechanneled toward national-level projects.
The controversy comes as Slovakia, for the first time, employs a decentralized system for part of its cohesion funding – allowing local and regional governments to decide which projects to support.
(de)