[pic] | COMMISSION OF THE EUROPEAN COMMUNITIES |

Brussels, 28.3.2007

COM(2007) 149 final

Proposal for a

DECISION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL

on the mobilisation of the EU Solidarity Fund according to point 26 of the Interinstitutional Agreement of 17 May 2006 between the European Parliament, the Council and the Commission on budgetary discipline and sound financial management

(presented by the Commission)

EXPLANATORY MEMORANDUM

The Interinstitutional Agreement of 17 May 2006[1] allows for the mobilisation of the European Union Solidarity Fund through a flexibility mechanism, within the annual ceiling of EUR 1 billion, 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 Hungary and Greece which were affected by severe floods in March and April 2006, total estimates of the damage caused are as follows:

(in EUR)

Direct damage | Aid proposed |

Hungary: Floods April 2006 | 519 096 784 | 15 063 587 |

Greece: Floods March 2006 | 372 261 099 | 9 306 527 |

Total | 891 357 883 | 24 370 114 |

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 24 370 114, to be allocated under heading 1a of the financial perspective.

The Commission will present an amending budget (AB) in order to enter in the 2007 budget specific commitment and payment appropriations, broken down by beneficiary country, as requested in Point 26 of the Interinstitutional Agreement of 17 May 2006.

Proposal for a

DECISION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL

on the mobilisation of the EU Solidarity Fund according to point 26 of the Interinstitutional Agreement of 17 May 2006 between the European Parliament, the Council and the Commission on budgetary discipline and sound financial management

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Interinstitutional Agreement of 17 May 2006 between the European Parliament, the Council and the Commission on budgetary discipline and sound financial management[4], and in particular point 26 thereof,

Having regard to Council Regulation (EC) No 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 17 May 2006 allows the mobilisation of the Fund within the annual ceiling of EUR 1 billion.

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

(4) Hungary and Greece submitted applications to mobilise the Fund, concerning two disasters caused by flooding.

HAVE DECIDED AS FOLLOWS:

Article 1

For the general budget of the European Union for the financial year 2007, the European Union Solidarity Fund shall be mobilised to provide the sum of EUR 24 370 114 in commitment and payment 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 139, 14.06.2006, p. 1

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

[3] Communication to the Commission on an application to mobilise the European Union Solidarity Fund introduced by Hungary in the case of severe floods in April 2006 and Communication to the Commission on an application to mobilise the European Union Solidarity Fund introduced by Greece in the case of severe floods in March 2006 setting out the analysis of the Commission of the requests.

[4] OJ C 139, 14.06.2006, p. 1.

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

[6] OJ C […], […], p. […]