[pic] | COMMISSION OF THE EUROPEAN COMMUNITIES |

Brussels, 10.3.2006

COM(2006) 114 final

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 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 Bulgaria, Romania and Austria which were affected by severe floods between April and August 2005, total estimates of the damage caused are as follows:

Direct damage (in EUR) |

Bulgaria: Floods May 2005 | 222 279 548 |

Bulgaria: Floods August 2005 | 237 446 248 |

Romania: Floods April/May 2005 | 489 529 837 |

Romania: Floods July/August 2005 | 1 049 681 003 |

Austria: Floods August 2005 | 591 943 573 |

Total | 2 590 880 209 |

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 106 357 627, to be allocated under heading 3 of the financial perspective.

The Commission will present an amending budget (AB) in order to enter in the 2006 budget specific commitment and payment 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[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 EUR 1 billion.

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

(4) Bulgaria, Romania and Austria submitted applications to mobilise the Fund, concerning five disasters caused by flooding.

HAVE DECIDED AS FOLLOWS:

Article 1

For the general budget of the European Union for the financial year 2006, the European Union Solidarity Fund shall be mobilised to provide the sum of EUR 106 357 627 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 283, 20.11.2002, p. 1

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

[3] Communication to the Commission on two applications to mobilise the European Union Solidarity Fund introduced by Bulgaria in the case of severe floods in May and August 2005 and Communication to the Commission on three applications to mobilise the European Union Solidarity Fund introduced by Romania and Austria in the case of severe floods in April/May and July/August 2005 setting out the analysis of the Commission of the requests.

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

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

[6] OJ C […], […], p. […]