BRATISLAVA – The European Commission has ruled out Slovak Prime Minister Robert Fico’s plan to use EU cohesion funds to subsidise household energy bills to the tune of €400 million, effectively scuppering one of his government’s key offers to voters.

Cohesion funding – a core part of the EU budget – is based on transfers of money from richer to less wealthy countries or regions, intended to narrow gaps in the level of infrastructure and social development across the bloc.

The Slovak parliament voted this month to fast-track the support scheme aimed at nearly 90% of households, with an existing universal payment due to expire this year that would leave consumers facing bills up to one-third higher.

Fico and his finance minister Denisa Saková said in late September that the subsidies would be “entirely financed from European funds”. Saková even claimed the scheme was consistent with the EU objectives to phase out imports of Russian gas, and that Brussels had already given it the “green light”.

The European Commission has rejected that claim.

“Energy compensations for inhabitants do not belong to Cohesion Policy priorities in 2021–2027,” a Commission spokesperson told Euractiv Slovakia. “Under the current rules, energy price subsidies cannot be financed by Cohesion Policy funds.”

The EU executive added that it was involved in “ongoing exchanges” with Bratislava over “appropriate measures to address…energy challenges” such as improving energy efficiency. But direct subsidies to Slovak households were off the table, it affirmed.

Already last week, Saková appeared to be considering a workaround whereby EU funds are redirected to jointly funded projects, freeing domestic budget resources to subsidise energy bills directly.

The rebuke from Brussels comes as Slovakia undergoes a period of harsh fiscal consolidation, marked by higher taxes and social security contributions. Opposition MPs from the liberal SaS party have accused Fico’s government of using the subsidies as tool of “political corruption” ahead of next year’s regional elections.

(cs, aw)