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 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].

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

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

On the basis of the Portuguese application to the EUSF for the fire related disaster in Portugal, received on 13 August 2003, the estimate of the direct damage is as follows:

// Total direct damage

Fire related

disaster in

Portugal // 946.489 million euros

In the light of the examination of this application [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 EU Solidarity Fund for a total amount of 31.655 million euros, to be allocated under heading 3 of the financial perspective.

[3] Communication to the Commission from Mr Barnier, Mrs Schreyer and Mr Fischler on an application introduced by Portugal to mobilise the European Union Solidarity Fund for the fire related disaster in Portugal.

The Commission will present a preliminary draft amending budget (PDAB) in order to enter in the 2003 budget specific commitment appropriations, as requested in Point 4 of the Interinstitutional Agreement of 7 November 2002.

2003/0206 (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 the 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) Portugal submitted an application to mobilise the Fund on 13 August 2003, concerning a fire-related disaster.

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

(4) The fire-related disaster in Portugal meets the conditions to mobilise the Fund;

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 31.655 million euros 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