[pic] | COMMISSION OF THE EUROPEAN COMMUNITIES |

Brussels, 08.09.2005

COM(2005) 401 final

2005/0170(COD)

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

The Interinstitutional Agreement of 7 November 2002[1] allows for the mobilisation of the European Union Solidarity 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 Council Regulation (EC) No 2012/2002[2].

On the basis of applications for assistance from the Fund by Sweden, Estonia, Latvia and Lithuania which were affected by a major storm on 8 January 2005, total estimates of the damage caused are as follows:

Direct damage (in EUR) |

Sweden | 2 297 313 252 |

Estonia | 47 868 000 |

Latvia | 192 590 000 |

Lithuania | 15 156 395 |

Total | 2 552 927 647 |

In the light of the examination of these applications[3], and considering the maximum possible grant from the Fund as well as the scope for reallocating appropriations under the heading requiring additional expenditure, the Commission proposes to mobilise the European Union Solidarity Fund for a total amount of EUR 92 880 830, to be allocated under heading 3 of the financial perspective.

The Commission will present an amending budget (AB) in order to enter in the 2005 budget specific commitment appropriations, broken down by beneficiary country, as requested in Point 4 of the Interinstitutional Agreement of 7 November 2002.

2005/0170(COD)

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[4], and in particular point 3 thereof,

Having regard to Council Regulation (EC) N° 2012/2002 of 11 November 2002 establishing the European Union Solidarity Fund[5],

Having regard to the proposal from the Commission,[6]

Whereas:

(1) The European Union has created a European Union Solidarity Fund (the "Fund") to show solidarity with the population of regions struck by disasters.

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

(3) Regulation (EC) No 2012/2002 contains the provisions whereby the Fund may be mobilised,

HAVE DECIDED AS FOLLOWS:

Article 1

For the general budget of the European Union for the financial year 2005, the European Union Solidarity Fund shall be mobilised to provide the sum of EUR 92 880 830 in commitment appropriations.

Article 2

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

Done at Brussels,

For the European Parliament For the Council

The President The President

[1] OJ C 283 of 20.11.2002, p. 1

[2] OJ L 311 of 14.11.2002, p. 3

[3] Communication to the Commission on four applications introduced by Sweden, Estonia, Latvia and Lithuania to mobilise the European Union Solidarity Fund in the case of a major wind storm on 8 January 2005 setting out the analysis of the Commission of the requests.

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

[5] OJ L 311 of 14.11.2002, p. 3.

[6] OJ C […] […], p. […]