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Fitto Defends Member State Responsibility for DNSH Compliance in Island Regions

EU Funding & Programmes · Regions & Rural areas · parliamentary_answers · 2026-04-23

Executive Vice-President Fitto, on behalf of the European Commission, has reaffirmed that the 'do no significant harm' (DNSH) principle is a horizontal requirement for EU-funded programmes, but stressed that it is up to Member States to ensure compliance on the ground, including in island regions. In a written answer to a parliamentary question from Sakis Arnaoutoglou (S&D, Greece), Fitto outlined the existing legal framework but offered no new measures to address concerns about large tourism investments and renewable energy projects on Greek islands.

The question, submitted on 11 February 2026, raised concerns that strategic tourism investments in Greek island regions are exceeding carrying capacity, straining water resources, and causing environmental degradation, potentially violating the DNSH principle. Arnaoutoglou also questioned whether the Commission would strengthen monitoring of the insularity principle under Article 174 TFEU.

Commission Points to Existing Rules

Fitto's answer cited Regulation (EU) 2021/1060 (Common Provisions Regulation) and Regulation (EU) 2021/241 (RRF Regulation) as the legal basis for DNSH. He explained that Member States must assess their programmes for DNSH compliance before submission and establish selection procedures to ensure individual projects align with approved types of actions. Under the RRF, Member States include a detailed DNSH self-assessment for each measure in their recovery plans.

No New Monitoring or Enforcement Proposed

The Commissioner made clear that the Commission approves programmes but does not select individual projects. 'It is therefore for the Member States to ensure that territorial specificities, including those related to insularity where relevant, are duly taken into account,' Fitto wrote. The answer contained no commitments to strengthen monitoring, issue new guidance, or introduce additional safeguards for island regions.

Policy Orientation and Stakeholder Impact

The response signals a continued reliance on Member State implementation rather than EU-level enforcement. This approach maintains the current balance between EU oversight and national sovereignty, but may leave environmental and local community interests vulnerable if national authorities lack capacity or political will. For EU institutions, the answer avoids expanding administrative burdens. For national authorities, it preserves flexibility but also full responsibility for DNSH compliance. For local communities and environmental NGOs in island regions, the lack of additional EU monitoring may be seen as insufficient protection. For investors and developers, the status quo provides regulatory predictability but risks future disputes if projects are later challenged for non-compliance.

Institutional Follow-Up

No further Commission action is signaled. The answer is a formal written response to a parliamentary question, with no legislative or policy proposal attached. MEPs may raise the issue again in committee or plenary, but no timeline for new initiatives is given.

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