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].

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

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

On the basis of applications for assistance from the Fund by Spain and Italy which were affected by disasters resulting from the sinking of the Prestige oil tanker, an earthquake in Molise and Apulia, and the eruption of Mount Etna at the end of 2002, total estimates of the damage caused are as follows:

// Direct damage

Prestige // 436 million euros

Molise // 1 558 million euros

Mount Etna // 849 million euros

Total // 2 843 million euros

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 56.250 million euros, to be allocated under headings 3 of the financial perspective.

[3] Communication to the Commission from Mr Barnier, Mrs Schreyer and Mr Fischler on four applications introduced by Spain and Italy to mobilise the European Union Solidarity Fund for the "Prestige" oil spill, the flooding in Northern Italy, the earthquake in Molise and the eruption of Mount Etna setting out the analysis of the Commission of the requests.

The Commission will present an amending budget (AB) in order to enter in the 2003 budget specific commitment appropriations, broken down by beneficiary country, as requested in Point 4 of the Interinstitutional Agreement of 7 November 2002.

2003/0166 (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,

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

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

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

Having regard to the proposal from the Commission,

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 EUR 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 2003, the European Union Solidarity Fund shall be mobilised to provide the sum of 56.250 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