WRITTEN QUESTION E-1756/01

by Ilda Figueiredo (GUE/NGL) to the Commission

(15 June 2001)

Subject: Floods in Portugal

In the wake of the severe weather conditions which affected Portugal, especially in the northern and central regions and above all during the weekend of 26-28 January 2001, when lives were lost and substantial material damage occurred to the sum of several score billion escudos, Parliament adopted a resolution on 15 February 2001.

In this resolution, Parliament called on the Commission, in collaboration with the Portuguese Government and the local authorities, to provide exceptional financial aid to supplement the funds made available by the authorities in Portugal to tackle the urgent requirements of the worst-hit local populations, rebuild the infrastructures which have been destroyed and help economic activity to recover.

In this connection, can the Commission provide information on the amount allocated under the heading of this exceptional aid, its execution level, its budgetary origin and the conditions agreed?

Answer given by Mr Barnier on behalf of the Commission

(11 September 2001)

The Commission is very aware of the social, economic and environmental consequences of the severe floods that struck Portugal in January 2001.

It is unable to grant exceptional financial assistance because the specific budget heading for emergency aid to cope with natural disasters in the Member States was deleted by Parliament in 1997. About EUR 5 million was allocated annually to that heading. The Commission must therefore use the instruments available, in particular under the regional policy, to provide disaster-stricken regions with the aid they need for rebuilding.

Portugal falls entirely within Structural Funds Objective 1 and has been allocated EUR 20.5 billion for 2000-06. As they are responsible for managing Portugal's various Objective 1 operational programmes (OP), the Portuguese authorities can decide to part-finance infrastructure and development projects for the production sectors affected, provided that they meet the programme's objectives, are eligible under the Structural Funds and comply with the regulations in force.

In this connection, the OP for agriculture and rural development approved by the Commission on 30 October 2000 makes provision for a measure for prevention and the rebuilding of agricultural development potential; no funds were initially allocated to that measure given the unpredictability of such events. As a result of the floods in question, the Portuguese authorities proposed that the Monitoring Committee for the programme allot EUR 25 million to the measure by deducting an equivalent amount from the funds for support for agricultural holdings under the same programme; this was approved by the Monitoring Committee at its meeting of 7 May 2001. The change could be made under the existing arrangements for flexibility since it involved financial transfers between measures within the same priority.

Lastly, Article 87(2)(b) (ex Article 92) of the EC Treaty states that aid granted by the Member States to make good damage caused by natural disasters is compatible with the Treaty. The Commission will give urgent attention to notifications from the Portuguese authorities. Any decision to allocate aid or not, however, is for the Portuguese alone to take.