Proposal for a DECISION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on the mobilisation of the EU Solidarity Fund according to point 3 of the Interinstitutional Agreement of 7 November 2002 between the European Parliament, the Council and the Commission on the financing of the European Union Solidarity Fund, supplementing the Interinstitutional Agreement of 6 May 1999 on budgetary discipline and improvement of the budgetary procedure

(presented by the Commission)

EXPLANATORY MEMORANDUM

Following the disastrous floods which occurred in August and September 2002 in some Member States and candidate countries whose accession to the European union is currently under negotiation, the European Union has decided to create a European Union Solidarity Fund (EUSF) to face disasters.

The Interinstitutional Agreement of 7 November 2002 [1] allows for the mobilisation of the Fund through a flexibility mechanism, within the annual ceiling of 1 billion euros, over and above the relevant headings of the financial perspective. The conditions of eligibility to the Fund are detailed in the Council Regulation establishing the EUSF [2], which notably contains a specific provision whereby the Fund may retroactively be mobilised for disasters since August this year.

[1] OJ

[2] OJ

On the basis of informal applications to the EUSF by the countries which were affected by the floods in August and September of this year, total estimates of the damage caused are as follows: 9 151 million euros in Germany; 2 939 million euros in Austria; 2 341 million euros in the Czech Republic and 834.5 million euros in France.

In the light of the above, and considering the maximum possible grant from the Fund as well as the scope for reallocating appropriations under the headings requiring additional expenditure, the Commission proposes to mobilise the EU Solidarity Fund for a total amount of 728 million euros, to be allocated under headings 3 and 7 of the financial perspective.

The Commission will present a supplementary and amending budget (SAB) in order to enter in the 2002 budget specific commitment appropriations, broken down by beneficiary country, as requested in Point 4 of the Interinstitutional Agreement of 7 November 2002.

Proposal for a DECISION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on the mobilisation of the EU Solidarity Fund according to point 3 of the Interinstitutional Agreement of 7 November 2002 between the European Parliament, the Council and the Commission on the financing of the European Union Solidarity Fund, supplementing the Interinstitutional Agreement of 6 May 1999 on budgetary discipline and improvement of the budgetary procedure

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Interinstitutional Agreement of 7 November 2002 between the European Parliament, the Council and the Commission on the financing of the European Union Solidarity Fund, supplementing the Interinstitutional Agreement of 6 May 1999 on budgetary discipline and improvement of the budgetary procedure [3], and in particular point 3 thereof,

[3] OJ C 172 of 18.06.1999, p. 1.

Having regard to the Council Regulation EC [...] establishing the European Union Solidarity Fund (EUSF),

Having regard to the proposal from the Commission,

Whereas:

(1) Following the disastrous floods which occurred in August and September 2002 in some Member States and candidate countries whose accession to the European union is currently under negotiation, the European Union has decided to create a European Union Solidarity Fund (EUSF) to face disasters;

(2) The Interinstitutional Agreement of 7 November 2002 allows the mobilisation of the Fund within the annual ceiling of EUR 1 billion;

(3) The Council Regulation establishing the EUSF contains a specific provision whereby the Fund may retroactively be mobilised for disasters since August this year;

(4) The countries concerned have transmitted to the Commission their estimate of the damages caused by the August and September 2002 floods;

HAVE ADOPTED THIS DECISION:

Article 1

For the general budget of the European Union for the financial year 2002, the EU Solidarity Fund shall be mobilised to provide the sum of 728 million euros in commitment appropriations.

Article 2

This Decision shall be published in the Official Journal of the European Communities.

Done at Brussels,

For the European Parliament For the Council

The President The President