From the European analysis office, we present to you an X-ray of how the European Union's Cohesion Policy is implemented in practice in the country's hottest economic spot: Gorj County[1]. With a record allocation of over 537 million euros through the Just Transition Program (JTP), Gorj represents the main pillar of the national strategy to transition from a mono-coal industry to a green, modern, and sustainable economy. Under the coordination of ADR South-West Oltenia, led by Stelian Bărăgan, the county is implementing a complex package of good financial and administrative practices aimed at securing every euro of European funding.

Gorj at the European spotlight: 537 million euros for economic diversification

The EU Cohesion Policy operates on the principle of solidarity, helping the most affected regions by structural changes not to be left behind. No other territory in Romania reflects this principle better than Gorj County. With a total funding of 537.2 million euros dedicated exclusively to mitigating the socio-economic impact of the energy transition, Gorj holds the largest county allocation in the country.

The main objective of these funds is not only to compensate for jobs lost in the mining sector but also to create a new entrepreneurial ecosystem. The key to success, as shown by the developments in the first half of 2026, lies in the flexibility of financing instruments and in proximity management.

Over-contracting of 100%: A vital boost for SMEs in Gorj

Traditionally, the risk of decommitment (loss of funds due to delays) is a major challenge in managing European funds. To counteract this phenomenon and give the Gorj business environment a real chance, the Managing Authority applied a mechanism of over-contracting of up to 100% of the initial budget allocated to the call dedicated to productive investments in SMEs[8].

This strategic decision means that all eligible funding applications submitted by entrepreneurs in Gorj can be financed. Through this good practice measure, the full utilization of European funds is ensured, and greater predictability is offered to local companies that undertake investment risks during this transition period[8].

Direct dialogue from the territory: Concrete solutions in Târgu Jiu

Good practices are not limited to decisions made in offices in Bucharest or Brussels. A central element of the management assumed by Stelian Bărăgan, general director of ADR South-West Oltenia from March 2026, is the constant presence in the territory.

A concrete proof of this was the working meeting organized at the AJOFM Gorj headquarters in Târgu Jiu, which brought together over 50 entrepreneurs in the process of implementing funding projects[9]. The purpose of these meetings is not purely administrative but represents a mechanism of direct technical assistance through which ADR specialists help companies overcome bureaucratic, financial, or procurement blockages.

Moreover, initiatives such as the "Future for Gorj" job exchange demonstrate that the use of European funds is directly related to the real needs of the community: professional retraining and re-employment of personnel made redundant by the Oltenia Energy Complex or related companies.

Just Transition Fund: Financial innovation for Gorj companies

Besides the classic grants (non-reimbursable funding), the modern Cohesion Policy promotes the use of innovative financial instruments[7]. The launch of consultations for the Just Transition Fund Participation (JTFP), a program with a total budget of over 240 million euros implemented in partnership with the Investment and Development Bank (IDB), opens new perspectives for Gorj[7].

This instrument offers:

• Loans with zero interest from European funds;

• A substantial non-reimbursable component, in the form of a grant, offered to companies that complete their investments on time;

• Access to massive capital, up to 10 million euros for SMEs and up to 50 million euros for large enterprises.

ADR South-West Oltenia General Director, Stelian Bărăgan, explained the importance of this mechanism for the county's economy:

“For our region, this fund represents a breath of oxygen and a modernization engine for Dolj and Gorj counties, which are in the midst of an economic transformation. We are talking about a real opportunity for local companies to access massive capital (…) under almost zero costs. It is a direct partnership between the state, the banking sector, and entrepreneurs, aimed at preserving jobs and creating new, competitive industries at the European level”.

A European lesson on regional resilience

The success of the EU Cohesion Policy in Gorj County is measured not only by the contracted sums but also by the sustainability of the created jobs and the economic resilience of the entire community. Through rigorous project monitoring, the use of over-contracting to protect funds, and the introduction of advantageous credit instruments, regional management provides a clear model of good European practices.

For Gorj, the transition is no longer just a difficult structural challenge but becomes, with the support ensured by the European Union, the foundation of a new era of economic development.