EXPLANATORY MEMORANDUM

1.Context of the proposal

This decision covers the mobilisation of the European Union Solidarity Fund (EUSF) for an amount of EUR 1 196 797 579 to provide assistance to Italy further to a series of earthquakes that took place between August 2016 and January 2017 in the regions of Abruzzo, Lazio, Marche and Umbria. This mobilisation is accompanied by Draft Amending Budget (DAB) No 4/2017 that proposes to enter the necessary appropriations in the general budget 2017, both in commitments and payments, after having deducted the advance already paid in 2016 (EUR 30 000 000).

2.Information and conditions

On 16 November 2016 the Commission received an initial application for financial assistance under the EUSF, in relation to a series of earthquakes affecting the regions of Abruzzo, Lazio, Marche and Umbria, after the first damage was recorded on 24 August 2016. This initial application was incomplete as a second series of earthquakes at the end of October 2016 had occurred and the evaluation of the additional damage still had to be performed. On 18 January 2017, shortly before the intended submission of the updated application a third series of severe earthquakes occurred. Consequently, on 15 February 2017 the Italian authorities presented an updated application with revised estimates including all damages caused between 24 August 2016 and 18 January 2017.

The Commission examined this application in accordance with Council Regulation (EC) No 2012/2002 of 11 November 2002 establishing the European Union Solidarity Fund (hereafter "the EUSF regulation"), in particular with Articles 2, 3 and 4 thereof. The most important elements of the assessment are set out below.

(1)During the period between 24 August 2016 and 18 January 2017, a series of strong earthquakes with magnitudes ranging from 5.9 to 6.5 in the Richter scale, followed by a multitude of aftershocks, affected wide areas of the Apennines chain in Central Italy, in particular the regions of Abruzzo, Lazio, Marche and Umbria.

(2)Earthquakes are of natural origin and therefore fall within the main field of application of the EUSF.

(3)The application from Italy, initially received on 16 November 2016, was within the deadline of 12 weeks after the first damage was recorded on 24 August 2016. In their application, the Italian authorities stressed that the assessment of the damage was incomplete and that the relevant figures were only provisional. The final application file was completed on 15 February 2017 to include the damages occurred between between 24 August 2016 and 18 January 2017.

(4)In its application, Italy requested the payment of an advance as laid down in Article 4a of the EUSF regulation. On 29 November 2016 the Commission adopted Implementing Decision C(2016) 7861 awarding EUR 30 000 000 in advances (the maximum amount allowed under the provisions of the EUSF regulation) from the anticipated financial contribution of the EUSF and subsequently paid it out in full to Italy.

(5)The Italian authorities have estimated the total direct damages caused by the disaster at EUR 21 878,8 million. This amount represents 1,36 % of Italy’s GNI, and exceeds the 'major disaster' threshold for mobilising the EUSF of EUR 3 312,2 million applicable to Italy in 2016 (i.e. EUR 3 billion in 2011 prices). As the estimated total direct damage exceeds the 'major disaster' threshold, the disaster qualifies as a “major natural disaster”.

(6)As regards the impact and consequences of the disaster, the earthquake of 24 August 2016 caused 299 casualties and 390 people were hospitalised. The earthquakes in October did not lead to casualties. The events in January caused 34 further casualties. The number of population assisted in the months following the shocks of 26 and 30 October 2016 reached its peak on 7 November with nearly 32 000 people assisted. Thousands of people needed to be evacuated, including patients from the hospitals in the Umbria region. On 8 November 2016, the assisted population exceeded 30 000 units in the area of the four affected regions, whereby about 11 000 were housed in hotels and accommodations both in the territories directly affected along the coast of the Marche and in the hinterland of Umbria, while other people were sheltered at public facilities made available by the municipalities. The area already severely affected by the events of August and October, was hit by further seismic events on 18 January 2017 and heavy snowfall led to the isolation of numerous villages in the Abruzzo region and caused significant harm to the living conditions of the affected population. The search and rescue operations turned out to be extremely complex.

(7)The area affected by the earthquake of 24 August 2016 is mainly characterised by agricultural and tourism businesses. The structures of many farms were damaged (barns, warehouses and equipment remittances). In the affected areas of the Marche and Umbria regions, the number of services and industrial enterprises is considerably higher than in the rest of the affected areas. The damage to businesses in these regions is quite significant. Furthermore, the seismic events have had very negative repercussions on the tourism sector that was thriving in the whole area. A big number of holiday homes, located in national parks, was significantly damaged. As the earthquakes hit many medieval mountain towns, the damage to cultural heritage sites is significant. For instance, the Amatrice town centre was destroyed after the shocks of 24 August. The earthquake of 30 October destroyed the 14th-century-Basilica of St. Benedict in Norcia.

(8)The cost of essential emergency and recovery operations eligible under Article 3(2) of the EUSF Regulation has been estimated by the Italian authorities at EUR 2 149 363 344 and has been broken down by type of operation. The largest share concerns the costs for restoration to working order of infrastructure, in particular roads, followed by the costs of the rescue services and for temporary accommodation.

(9)The affected regions are "transition and more developed regions" under the European Structural and Investment (ESI) Funds (2014-2020). The Italian authorities signalled to the Commission their intention to reallocate funding from the ESI Funds programmes towards recovery measures.





(10)As regards the implementation of Union legislation on disaster risk prevention and management, there is currently no infringement procedure on-going. Italy reports that there is no specific Union legislation on seismic risk. However, within the framework of the Union civil protection legislation, Member States shall develop risk assessments at national or appropriate sub-national level and make available to the Commission a summary of the relevant elements thereof by 22 December 2015 and every three years thereafter. Italy is compliant with this provision and already submitted to the European Commission (DG ECHO) its National Risk Assessment Overview.

(11)At the date of submitting the application Italy was not subject to infringement proceedings concerning Union legislation relating to the nature of the disaster.

(12)The Italian authorities confirmed that there is no insurance coverage of eligible costs.