COMMUNICATION FROM THE COMMISSION TO THE COUNCIL AND THE EUROPEAN PARLIAMENT - LETTER OF AMENDMENT No 1 TO PRELIMINARY DRAFT SUPPLEMENTARY AND AMENDING BUDGET No 4/2002 - SECTION III - COMMISSION

Having regard to:

- Article 272 of the Treaty establishing the European Community,

- Article 78 of the Treaty establishing the European Coal and Steel Community,

- Article 177 of the Treaty establishing the European Atomic Energy Community,

- Articles 14 and 15 of the Financial Regulation of 21 December 1977 applicable to the general budget of the European Communities [1] as last amended by Regulation No 762/2001 [2] of 9 April 2001,

[1] OJ L 356, 31.12.1977, p. 1.

[2] OJ L 111, 20.4.2001, p. 1.

the European Commission hereby presents letter of amendment No 1 to preliminary draft supplementary and amending budget No 4/2002 for the reasons set out in the explanatory memorandum.

***

EXPLANATORY MEMORANDUM

In the wake of the disastrous floods which struck a number of countries this August, the Commission proposed on 11 September 2002 establishing, by interinstitutional agreement, [3] a new flexibility instrument to endow the EU Solidarity Fund which will provide relief in the event of natural, technological and environmental disasters. This fund may operate in the EU Member States and in countries negotiating for accession. It will operate in accordance with the arrangements laid down in the Council regulation on the Solidarity Fund, proposed by the Commission on 18 September 2002, [4] which will constitute the legal basis for the expenditure.

[3] SEC(2002) 960

[4] COM(2002) 514 final

In accordance with these proposals, this letter of amendment will insert two budget lines, one under heading 3, internal policies, and one under heading 7, pre-accession strategy, which will be able to accommodate the fund's operations from 2002. It is proposed that the lines be entitled as follows:

- B2-4 (new title): European Union Solidarity Fund - Member States, and

- B7-09 (new chapter): European Union Solidarity Fund - countries negotiating for accession.

The lines would carry token entries and would be endowed after the fund had been mobilised.

PART B

>TABLE POSITION>

SUBSECTION B2 - STRUCTURAL OPERATIONS, STRUCTURAL AND COHESION EXPENDITURE, FINANCIAL MECHANISM, OTHER AGRICULTURAL AND REGIONAL OPERATIONS, TRANSPORT AND FISHERIES

New title

TITLE B2-4 -- EUROPEAN UNION SOLIDARITY FUND - MEMBER STATES

>TABLE POSITION>

New chapter

CHAPTER B2-4 0 -- European Union Solidarity Fund - Member States

New article

Article B2-4 0 0 -- European Union Solidarity Fund - Member States

>TABLE POSITION>

This article is intended to accommodate the appropriations resulting from the mobilisation of the European Union Solidarity Fund in the event of natural, environmental or technological disasters.

Legal basis

Proposal for a Council Regulation, adopted by the Commission on 18 September 2002, establishing the European Union Solidarity Fund (OJ .., ...2002, p. ).

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, proposed by the Commission on 11 September 2002 (OJ .., ...2002, p. ).

SUBSECTION B7 -- EXTERNAL ACTIONS

TITLE B7-0 -- PRE-ACCESSION STRATEGY

>TABLE POSITION>

New chapter

CHAPTER B7-0 9 -- European Union Solidarity Fund - countries negotiating for accession

New article

Article B7-0 9 0 -- European Union Solidarity Fund - countries negotiating for accession

>TABLE POSITION>

This article is intended to accommodate appropriations resulting from the mobilisation of the European Union Solidarity Fund in the event of natural, environmental or technological disasters.

Legal basis

Proposal for a Council Regulation, adopted by the Commission on 18 September 2002, establishing the European Union Solidarity Fund (OJ .., ...2002, p. ).

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, proposed by the Commission on 11 September 2002 (OJ .., ...2002, p. ).