European Union (EU) countries can use €225 billion in unused loans from the Covid-19 recovery fund to tackle energy problems, European Commission Vice President Valdis Domrovskis said.
Earlier, the EU launched an €800 billion joint borrowing program last year to help its 27 members recover from the coronavirus pandemic.
But instead of a pandemic, the government is now grappling with a cost-of-living crisis caused by rising energy prices after Russia halted most gas shipments to Europe in response to sanctions imposed on it.
Valdis Domrovskis told the European Parliament's economic committee, saying member states could ask for loans to finance additional investments and reforms.
He also said that this loan could be used to respond to Moscow's aggression as well as to finance reforms under the 'REPowerEU' plan, a plan to reduce dependence on Russian oil.
Dombrovskis said the government could also modify the approved spending plan because the war in Ukraine has changed the circumstances under which the initial plan was made.
The EU is now facing the risk of recession following the energy crisis it faces as a result of the Russian and Ukrainian wars.
