EXPLANATORY MEMORANDUM

1.Context of the proposal

This decision covers the mobilisation of the European Union Solidarity Fund (EUSF) in accordance with Council Regulation (EC) No 2012/2002 of 11 November 2002 (hereafter refered to as the 'Regulation') for an amount of EUR 17 730 519 to provide assistance to Latvia further to the flooding disaster that took place in 2017. This mobilisation will be financed in full through the partial use of the remaining EUR 47 479 154 in commitment and payment appropriations already entered into the 2018 budget for covering advances. An amending budget is therefore not required.

2.Information and conditions

During the summer and autumn of 2017, Latvia was affected by a long-lasting period of intense rainfalls leading to the saturation of soils and subsequent flooding throughout the country, particularly in the Latgale region and surrounding territories. As a consequence, crops were destroyed and widespread damage was caused to water courses, the drainage system, connected water treatment installations as well as road and railway infrastructure.

(1)Latvia applied for a contribution from the EUSF on 14 November 2017, within the deadline of 12 weeks after the first damage was recorded on 24 August 2017. The application was submitted as a ‘major natural disaster' under Article 2(2) of the Regulation. On 27 April 2018, in response to a request from the Commission, Latvia submitted additional information necessary to complete the assessment of this case.

(2)The disaster is of natural origin and therefore falls within the field of application of the EUSF.

(3)Latvia estimated the total direct damage caused by the flooding at EUR 380,5 million. This amount exceeds the 'major disaster threshold' for mobilising the EUSF applicable to Latvia in 2017 of EUR 145 740 000 (i.e. 0,6% of Latvia’s Gross National Income based on 2015 data). As the estimated total direct damage exceeds that threshold, the disaster qualifies as a ‘major natural disaster’ as defined by the Regulation. The application from Latvia is therefore eligible for a contribution from the EUSF.

(4)Latvia did not request the payment of an advance.

(5)The Latvian application gives a detailed description of the meteorological situation leading to the disaster and of its effects. The continuous rainfall and floods during August, September and October 2017 caused considerable damage in agriculture resulting in the loss of crops and the widespread clogging of the agricultural drainage system. Moreover, state and local government infrastructure was damaged, in particular in the fields of water (water courses, drainage systems, hydrological installations, embankments and connected protective infrastructure) and transport infrastructure (major and local roads, railways). In total, 184 state motor roads were damaged, the railway traffic had to be suspended temporarily. On 29 August 2017 the state of emergency was declared. State and local government institutions and enterprises, providing services to the population, could not function properly. A number of schools and other local government buildings were flooded and had to be closed. Water courses were washed out and their beds filled with deposits, affecting over 28 000 km of (underground) drainage systems, some 4 500 km of open drains and ditches and some 1 700 water courses and hydrological constructions. The flooding of waste water treatment installations led to the pollution of water and presented a danger to the environment.

(6)Latvia estimated the cost of emergency and recovery operations eligible under Article 3(2) of the Regulation at EUR 36,2 million and presented it broken down by type of operation. By far the largest share of eligible costs (almost EUR 32 million) concerns the public drainage system and related infrastructure. The contribution from the EUSF may however not be used for repairs going beyond the state of these assets before the disaster.

(7)The Latvian authorities confirmed that there is no insurance coverage of eligible cost.

(8)The affected region is a 'less developed region' under the European Structural and Investment Funds (2014-2020). The Latvian authorities did not signal to the Commission their intention to reallocate funding from the ESI Funds programmes towards recovery measures. However, following a request from Latvia for support to farmers presented to the Commission in November 2017, the Commission adopted Implementing Regulation (EU) 2018/108 on "an emergency measure in the form of aid to farmers due to the floods and heavy rainfalls in certain areas of Lithuania, Latvia, Estonia and Finland". The maximum amount provided to Latvia is EUR 3,5 million.

(9)Latvia did not activate the Union Civil Protection Mechanism.

(10)As regards the implementation of Union legislation on disaster risk prevention and management, there is currently no infringement procedure on-going.

2.5Conclusion

For the reasons set out above, the disaster referred to in the application submitted by Latvia meets the conditions set out in the Regulation for mobilising the EUSF.

3.Financing from the EUSF allocations 2018

Council Regulation (EU, EURATOM) No 1311/2013 of 2 December 2013 laying down the multiannual financial framework for the years 2014-2020 (hereafter "the MFF regulation"), and in particular Article 10 thereof allows for the mobilisation of the EUSF, within an annual ceiling of EUR 500 000 000 (2011 prices). Point 11 of the Interinstitutional Agreement of 2 December 2013 between the European Parliament, the Council and the Commission on budgetary discipline, on cooperation on budgetary matters and on sound financial management (IIA) lays down the modalities for the mobilisation of the EUSF.