Draft for an Interinstitutional Agreement between the European Parliament, the Council and the Commission on the financing of the European Union Solidarity Fund and the conditions governing the resort to it

EXPLANATORY MEMORANDUM

In the event of a major disaster occurring in the European Union or in the candidate countries with which accession negotiations are underway, the EU should have the means to contribute to emergency relief and the rapid return to normal of essential living conditions in the disaster-stricken areas.

Therefore, the Commission has proposed the creation of a European Union Solidarity Fund to face disasters.

The maximum annual amount which could be mobilised by the Fund is 1 billion euros.

In order to ensure the necessary financial flexibility and speed of intervention, the Fund's appropriations should be made available over and above the annual ceilings of the relevant financial perspective headings and their mobilisation should be able to rely on a fast procedure.

Draft for an Interinstitutional Agreement between the European Parliament, the Council and the Commission on the financing of the European Union Solidarity Fund and the conditions governing the resort to it

1. The European Parliament, the Council and the European Commission agree upon the following flexibility mechanism concerning a European Union Solidarity Fund [1], hereafter referred to as 'the Fund'.

[1] Regulation

The Fund is intended to allow a quick financial assistance in the event of a major disaster occurring on the territory of a Member State or of a candidate country whose accession to the European Union is currently under negotiation.

2. The annual amount available for the Fund is 1 billion euros. On the 1st October of each year, one fourth of the annual amount should remain available in order to cover needs arising until the end of the financial year.

3. When the Fund is mobilised, under the conditions provided for in the basic act governing this instrument, the corresponding expenditure shall be entered in the budget over and above the relevant headings in the financial perspective, as laid down in Annex I of the Interinstitutional Agreement of 6 May 1999 on budgetary discipline and improvement of the budgetary procedure [2].

[2] OJ 1999/C 172/01, 18.6.1999

4. To mobilise the Fund, the Commission presents a preliminary draft amending budget. At the same time, the Commission initiates a trialogue procedure, if necessary in a simplified form, to secure the agreement of the two arms of the budgetary authority on the need to resort to the Fund and on the amount required. On the basis of the results of this trialogue, the two arms of the budgetary authority will undertake to adopt the amending budget in a single reading by each of the institutions concerned.

5. The present Interinstitutional Agreement is applicable from the budgetary year 2002 and for the duration of the current financial perspective, as defined in the Interinstitutional Agreement of 6 May 1999 on budgetary discipline and improvement of the budgetary procedure.

Done at Brussels, [...]

For the European Parliament For the Council For the European Commission

The President The President The President

[...] [...] [...]