Oct. 18 (UPI) -- The European Union on Tuesday said it would redirect nearly $40 billion in unused funds to help cover the costs of soaring energy prices.
The EU announced a program that would tap funds from its Cohesion Policy, an investment tool meant to strengthen economic, social and territorial cohesion across the bloc, to support consumers and small-to-medium-sized businesses.
Elisa Ferreira, the European commissioner for the policy, said the investment tool has served as a buffer in the past.
"We have been at the forefront in multiple crises, from the COVID-19 emergency to supporting countries and regions welcoming Ukrainians fleeing Russia's aggression against Ukraine," she said. "Now, the policy will play a role in tackling the energy crisis, supporting small and medium businesses and vulnerable households."
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While off their highs for the year, crude oil and natural gas prices continue to pressure the global economy. The International Monetary Fund said European natural gas prices are up four-fold since 2021 because of the conflict in Ukraine.
"Russia's invasion of Ukraine continues to powerfully destabilize the global economy," the IMF's latest world outlook read. "Beyond the escalating and senseless destruction of lives and livelihoods, it has led to a severe energy crisis in Europe that is sharply increasing costs of living and hampering economic activity."
Individual members of the European Union have unveiled their own measures to help consumers cope. The German government last week said that energy consumers will have some relief through the winter heating season by way of a $195 billion subsidy to cover their bills,
Opponents worry some of the subsidies could backfire because they could incentivize demand for scarce natural resources.
Tensions over bloc-wide economic conditions, meanwhile, are boiling over. French protests that began with refinery workers protesting for better wages erupted into nationwide demonstrations on Tuesday, creating a major headache for French President Emmanuel Macron.
The EU added that individual member states could apply for some relief under the new funding arrangement.
