GBAF Logo
Global Banking & Finance Awards® 2026 Nominations open, free to enter Nominate now →
East European states want more EU fund flexibility to support industry as energy prices rise - Finance news and analysis from Global Banking & Finance Review
Finance

East European states want more EU fund flexibility to support industry as energy prices rise

Published by Global Banking & Finance Review

Posted on October 19, 2026

2 min read

· Last updated: October 19, 2026

Add as preferred source on Google

East European States Request Flexible EU Funding to Offset Industry Energy Costs

Central and Eastern European Governments Seek Relief for Industry Amid Energy Crisis

Background: Rising Energy Prices and Budget Deficits

Oct 19 (Reuters) - Slovakia, the Czech Republic, Hungary and Poland are seeking temporary exemptions to use some European Union funds to help soothe the impact of high energy prices on industry, Slovak Economy Minister Denisa Sakova said on Monday.

• Governments in central and eastern Europe have been facing rising budget deficits and are taking measures to ease the impact of high energy prices on people and business, whether through utility bills or at the fuel pump, as wars in the Middle East and Ukraine weigh on global markets

Visegrad Group Coordination and EU Engagement

Regional Meeting with EU Energy Commissioner

• On Monday, Slovakia hosted neighbouring economy and energy ministers together with EU Energy Commissioner Dan Jorgensen; the four countries make up the Visegrad group of states (V4)

Request for Temporary EU Funding Exemptions

• "We have submitted a request for a temporary exemption that would allow us to use European Union resources so that our industry, which has schemes in place to help it cope with high energy prices, can receive this support," Sakova said at a broadcast news conference

• She said exemptions could be for certain cohesion or modernisation funds

Concerns Over Long-Term Fiscal Impact

• "This is not just a question for Slovakia or the public finances of the Slovak Republic, but of course, every V4 country does not want to place a long-term burden on its state budget"

Reporting Credits

(Reporting by Jason Hovet in PragueEditing by Tomasz Janowski)

Key Takeaways

  • Four Visegrad states seek temporary EU fund exemptions to support energy‑intensive industries without burdening public finances
  • This aligns with EU’s National Escape Clause guidance, allowing capped flexibility (0.3 % annual, 0.6 % cumulative of GDP) for energy security measures during 2026‑2028 (eur-lex.europa.eu)
  • The move complements broader EU initiatives like AccelerateEU and METSAF, aimed at timely, targeted, and temporary relief while accelerating energy transition (eur-lex.europa.eu)

References

Frequently Asked Questions

Which countries are seeking EU fund flexibility to support industry?
Slovakia, the Czech Republic, Hungary, and Poland are seeking temporary EU fund exemptions to support their industries.
What is the main reason for these European states' request?
The main reason is to ease the impact of high energy prices on industries due to global market disruptions.
What type of EU funds might be used to support industry?
Certain cohesion or modernization funds may be used to offer energy price support to industries.
Who discussed the EU fund flexibility request?
Economy and energy ministers from Visegrad group countries and the EU Energy Commissioner discussed the request.
Why do these countries want temporary rather than permanent exemptions?
They aim to avoid placing a long-term burden on their state budgets while supporting industry in the short term.

Tags

Related Articles

More from Finance

Explore more articles in the Finance category