WRITTEN QUESTION E-3557/02

by Marie Isler Béguin (Verts/ALE) to the Council

(12 December 2002)

Subject: Setting up of a European Bank for Environmental Prevention and Rehabilitation

For the decade following the collapse of the Communist bloc in Europe, the EU set as priorities the implementation and follow-up of the process of economic and industrial transition in the countries of Eastern Europe, in response to their prompt application to join the EU and in preparation for their accession. Under these circumstances and faced with the challenges presented by a changing Europe, the EU established an ad hoc bank, the European Bank for Reconstruction and Development.

The transition process has benefited greatly in each of the accession countries from EBRD guarantees, funding and strategies. That the EU has now set a firm date for accession is testament to the advanced stage of the process, and, therefore, leaves room for new and equally pressing priorities.

The challenges presented by natural disasters are at least as great as the previous challenge of transforming the Communist economies in the eastern half of Europe. The effects of disruptions to ecosystems or in terms of climate, weather or marine life, which are currently being vigorously felt on our continent, take a huge financial toll. The scale of the cost of the present environmental crises and, above all, of those to come has recently been estimated by the United Nations Environment Programme (UNEP) at some USD 150 billion a year.

Do these facts and figures, illustrating the challenges and dangers and therefore the funding and efforts required, convince the Council of the need for a Community policy aimed at taking measures commensurate with the problems that arise and dealing with these environmental situations?

Should there not be one interlocutor and central actor to coordinate and manage rebuilding and the limitation of these environmental disasters, such as the EBRD was in the case of industrial crises?

Would the Council not simply be carrying out its responsibilities by promoting a European Bank for Environmental Prevention and Rehabilitation, which would play a monitoring role and provide information and education, with the task of aiding environmental transition today and in the future?

Reply

(5 and 6 May 2003)

No proposal to this effect has been submitted by the Commission to the Council. The Council has therefore not examined the particular issue raised by the Honourable Parliamentarian.

However, the Council has by virtue of Regulation 2012/2002 of 11 November 200(1) 1 set up the European Union Solidarity Fund which mainly aims to cover a share of the public expenditure incurred by a Member State or a country which will become a Member State in 2004, in case these countries are stuck by a major natural disaster, in order to contribute to a rapid return to normal living conditions in the disaster-stricken regions.

The Fund covers any disaster resulting in damage estimated at over EUR 3 billion in 2002 prices or alternatively at over 0,6 % of the gross national income of the country concerned. However, exceptionally, even if these quantitative criteria are not met, assistance from the Fund can also benefit a determined region affected by an extraordinary disaster (mainly a natural one) affecting the major part of its population with serious and lasting repercussions on living conditions and the economic stability of this region. Assistance under this heading is limited to 7,5 % of the annual budgetary amount of the Fund of EUR 1 billion.

Assistance under the Fund, as an additional instrument, should remain complementary to the efforts of the Member State affected by the disaster. The Fund does neither purport to replace the existing economic and social cohesion instruments able to finance risk prevention measures and the repair of damaged infrastructure, nor to relieve third parties from their responsibility or to finance repairs in case of insurable risks.

Lastly, the Council is awaiting the Commission's proposals, announced as part of its legislative and work programme for 2003, designed to promote sustainable development and strengthen social and economic cohesion balancing environmental, social and economic concerns through implementation of the EU's sustainable development strategy.

(1) OJ L 311, 14.11.2002, p. 3.