European Parliament legislative resolution on the proposal for a regulation of the European Parliament and of the Council establishing the European Union Solidarity Fund (COM(2005)0108 - C6-0093/2005 - 2005/0033(COD))
Date: 2006-05-18
Institutions: Committee on Development, European Parliament
Subjects: EU financial instrument, economic support, emergency aid, man-made disaster, natural disaster, public health, terrorism

7.12.2006

EN

Official Journal of the European Union

C 297 E/331

Thursday, 18 May 2006

P6_TA(2006)0218

EU Solidarity Fund ***I

European Parliament legislative resolution on the proposal for a regulation of the European Parlia-
ment and of the Council establishing the European Union Solidarity Fund (COM(2005)0108 —
C6-0093/2005 — 2005/0033(COD))

(Codecision procedure: first reading)

The European Parliament,

— having regard to the Commission proposal

to the European Parliament

and the Council

(COM(2005)0108) (1),

— having regard to Article 251(2), Article 159(3) and Article 181a(2) of the EC Treaty, pursuant to which

the Commission submitted the proposal to Parliament (C6-0093/2005),

— having regard to its resolution of 5 September 2002 on floods in Europe (2),

— having regard to its resolution of 8 September 2005 on natural disasters (fires and floods) in Europe this

summer (3),

— having regard to Rule 51 of its Rules of Procedure,

— having regard to the report of the Committee on Regional Development and the opinions of the
Committee on Budgets and the Committee on the Environment, Public Health and Food Safety
(A6-0123/2006);

1. Approves the Commission proposal as amended;

Points out that the appropriations indicated in the legislative proposal beyond 2006 are subject to the

2.
decision on the next multi-annual financial framework;

3. Calls on the Commission, once the next financial framework is adopted, to present, if appropriate, a
proposal to adjust the financial reference amount of the programme;

4. Calls on the Commission to refer the matter to Parliament again if it intends to amend the proposal
substantially or replace it with another text;

5.

Instructs its President to forward its position to the Council and Commission.

(1) Not yet published in OJ.
(2) OJ C 272E, 13.11.2003, p. 471.
(3) Texts Adopted, P6_TA(2005)0334.

P6_TC1-COD(2005)0033

Position of the European Parliament adopted at first reading on 18 May 2006 with a view to the
adoption of Regulation (EC) No …/2006 of the European Parliament and of the Council establishing
the European Union Solidarity Fund

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community, and in particular the third paragraph of
Article 159 and the second paragraph of Article 181a thereof,

Having regard to the proposal from the Commission,

Having regard to the opinion of the European Economic and Social Committee (1),

Having consulted the Committee of the Regions,

Acting in accordance with the procedure laid down in Article 251 (2),

(1) OJ C 28, 3.2.2006, p. 69.
(2) Position of the European Parliament of 18 May 2006.

C 297 E/332

EN

Official Journal of the European Union

7.12.2006

Thursday, 18 May 2006

Whereas:

(1)

(2)

(3)

(4)

(5)

(6)

(7)

A ‘disaster’ is any major destructive event that occasions serious harm to the population and the
environment, such as a flood, fire or drought. In the event of major disasters or crisis situations, the
Community should show its solidarity with the Member States, and above all with the population
concerned, by promptly providing specific financial assistance to contribute to a rapid return to
normal living conditions in the affected regions and by contributing to financial compensation for
the direct victims, without becoming a substitute for the competent public and private authorities.

The European Union Solidarity Fund (hereinafter ‘the Fund’) enables the Community to intervene
in the event of major disasters or crisis situations. It should thus make a substantial contribution
to more effective and targeted Community action in areas in which the public expect the Com-
munity to act. It is therefore important to ensure that the Fund's financial resources match its field
of application, so that in all circumstances the Community can meet public expectations in an
enlarged and further enlarging European Union. This means on the one hand that the field of
application should not be overstretched, and on the other hand that the Community should be able
to mobilise sufficient funds for clearly defined fields of application, even in years of particularly
acute crisis.

The Community should also show solidarity with the countries negotiating their accession to the
European Union.

Major environmental, industrial and technological disasters, including river and marine pollution
and radiological threats, may be caused by people or accidentally or be the consequence of natural
events which have immediate, devastating effects, such as floods and forest fires, or long-term
effects, such as droughts and frosts, as well as from acts of terrorism. Existing economic and social
cohesion instruments are able to finance risk-prevention measures and the repair of damaged infra-
structure. The Fund established by Council Regulation (EC) No 2012/2002 (1) enables the Community
to help in mobilising emergency services to meet the immediate needs of the persons directly
affected and contribute to the short-term restoration of damaged key infrastructure so that economic
activity can resume in the disaster-stricken regions. That Fund is however mainly intended for disas-
ters resulting from natural causes, and provision should also be made to allow the Community to
intervene in the event of crisis situations having a non-natural origin and for which responsibility
cannot be sufficiently identified.

The objective of the action to be taken is to complement the efforts of the States concerned in such
cases where the effects of a disaster or crisis situation are of such gravity that those States cannot
tackle the situation with their own means alone. Since this objective cannot be sufficiently achieved
by the Member States and can therefore, by reason of the scale of the action, be better achieved at
Community level, the Community may adopt measures, in accordance with the principle of subsi-
diarity as set out in Article 5 of the Treaty. In accordance with the principle of proportionality, as set
out in that Article, this Regulation does not go beyond what is necessary in order to achieve those
objectives.

The Solidarity Fund should be financed independently of the financial framework with a
maximum amount to be mobilised only when deemed necessary. In order to provide adequate finan-
cing, the Fund should be included in the flexibility reserve up to a maximum of 7 billion Euro.

In line with the principle of subsidiarity, action under this Regulation should be confined to major
disasters. These should be defined depending on the field. In cases of terrorist attack, the Com-
munity should react to events even where the material damage does not reach the threshold for
mobilisation of the Fund but the consequences of the attack are so serious that Community soli-
darity becomes imperative. Consideration should be given to the specific situation of remote and
isolated regions, such as the insular and outermost regions, in the context of a reinforced partner-
ship.

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

7.12.2006

EN

Official Journal of the European Union

C 297 E/333

Thursday, 18 May 2006

(8)

Experience acquired in the first years following the establishment of the previous Fund has high-
lighted the difficulty of applying it to slowly-evolving disasters. This Regulation therefore needs to
include a clear definition of the time from which a request is eligible. It is also necessary, as a
matter of urgency, to adapt the eligibility rules to the characteristics, intensity and duration of the
event at the root of the problem, in particular by ensuring financial coverage for the specific
measures adopted to tackle disasters of this type.

(9)

Major disasters, particularly those which are of a natural origin, often affect more than one country.
Where a major disaster has struck an eligible State, assistance may also be granted to an eligible
neighbouring country affected by the same disaster.

(10) Community aid should be complementary to the efforts of the States concerned and be used to cover
a share of the public expenditure committed to dealing with the most essential emergency operations
resulting from a major disaster.

(11)

In line with the principle of subsidiarity, Community aid should only be granted upon the application
of an affected State. The Commission should ensure equitable treatment of requests presented by the
States.

(12) Applicant States may have an immediate need for financial assistance to help cover expenditure
relating to the most urgent steps and rescue operations. Where an applicant State so requests, advance
funding should therefore be made upon receipt of that application, subject to budgetary availability.

(13)

Prudent financial management is required to ensure that the Community can be in a position to
respond where a succession of disasters occurs within a relatively short period.

(14)

It is appropriate to allow a rapid decision to be taken to commit specific financial resources and
mobilise them as quickly as possible. Administrative procedures should be adjusted accordingly and
confined to the minimum absolutely necessary. To this end, the Interinstitutional Agreement between the
European Parliament, the Council and the Commission of 17 May 2006 on Budgetary Discipline and Sound
Financial Management provides for the financing of the Fund (1).

(15)

The mechanisms for payment and use of grants made under this Regulation should reflect the
urgency of the situation. Therefore a realistic deadline should be laid down for the use of any finan-
cial assistance awarded.

(16) A State which benefits from assistance should involve, in accordance with its specific constitutional,
institutional, legal or financial context, regional or local authorities in the conclusion and application
of the implementation agreements. The beneficiary State should nevertheless remain responsible for
the implementation of
the operations
supported by Community financing in accordance with Council Regulation (EC, Euratom) No
1605/2002 of 25 June 2002 on the Financial Regulation applicable to the general budget of the
European Communities (2) (hereinafter ‘the Financial Regulation’).

the assistance and for the management and control of

(17) An operation funded under this Regulation should not receive financial assistance from other Com-
munity financial instruments. Where, in relation to an operation, financial assistance is provided from
instruments relating to the compensation of specific damages, that
Community or international
operation should not, for the same purpose, benefit from assistance under this Regulation.

(18) Community action should not relieve of their responsibility third parties who, under the ‘polluter pays’
principle, are liable in the first instance for the damage caused by them, or discourage preventive
measures at both Member State and Community level, or be a substitute for public or private insur-
ance provision.

(1) OJ C 139, 14.6.2006, p. 1.
(2) OJ L 248, 16.9.2002, p. 1.

C 297 E/334

EN

Official Journal of the European Union

7.12.2006

Thursday, 18 May 2006

(19) Maximum transparency is required in implementing the Community's financial assistance as well as

proper monitoring of the use of resources.

(20)

Provision should be made for beneficiary States to justify the use made of any assistance received.

(21)

In exceptional cases and depending on the availability of financial resources for solidarity action
under this Regulation in the year in which a disaster occurs, provision should be made for supplemen-
tary grants under the financial appropriations for the following year.

(22)

It is necessary to provide that the competent Community bodies are able to carry out their obliga-
tions regarding financial control.

(23) Assistance for expenditure which is subsequently recovered from third parties, or assistance which is
not used in accordance with this Regulation or which was received in excess of the final valuation of
the damages, should be recovered.

(24)

Technical assistance for solidarity action under this Regulation should be provided for in order to
improve the ability of Member States to present the Commission and any other relevant body with
a duly completed application for assistance and the Commission's ability to assess applications made
to it.

(25) Regulation (EC) No 2012/2002 should be repealed with effect from the date of entry into force of this
Regulation. Its provisions should, however, continue to be applicable to any application made before
that date,

HAVE ADOPTED THIS REGULATION:

Article 1

Subject-matter and scope

1.
A European Union Solidarity Fund, hereinafter ‘the Fund’, is established to enable the Community to
respond to major disasters or crisis situations affecting Member States or regions thereof, or candidate
countries involved in accession negotiations with the European Union, hereinafter ‘eligible States’.

2.
A candidate country involved in accession negotiations with the European Union may only be
awarded assistance from the Fund where a major disaster affects a cross-border land or sea area lying
between that country and a Member State.

3.

This Regulation lays down rules concerning operations of the Fund in relation to the following:

a) natural disasters;

b)

industrial and/or technological disasters;

c) public health emergencies;

d) acts of terrorism.

Article 2

Major disasters

For the purposes of this Regulation, a disaster or crisis situation shall be considered to be major where it
results, in at least one eligible State, in direct damage, the amount of which is estimated as being in excess
of 1 billion Euro in 2007 prices or in excess of 0,5 % of the gross national income of the State concerned.

7.12.2006

EN

Official Journal of the European Union

C 297 E/335

However, even if those quantitative criteria are not met, the Commission may in exceptional and duly justi-
fied circumstances, recognise that a major disaster or crisis situation has occurred on a specific part of the
territory of an eligible State. In such a case the Commission shall take all necessary measures under the
Fund.

Special consideration shall be given to remote or isolated regions, such as the insular and outermost
regions defined in Article 299(2) of the Treaty.

Thursday, 18 May 2006

Article 3

Solidarity operations

At the request of an eligible State, the Commission may award financial assistance from the Fund in

1.
the form of a grant, if a major disaster or crisis situation occurs on the territory of that State.

At the request of an eligible State which shares a border with the State referred to in the first subparagraph
and which has been affected by the same major disaster or crisis situation, the Commission may also grant
assistance from the Fund to that State.

2.

For any given disaster, an eligible State may receive a single grant only.

Article 4

Eligible operations

Financial assistance under this Regulation shall be granted only for operations, hereinafter ‘eligible opera-
tions’, which are carried out by the public authorities of the State concerned, or by bodies acting in the
public interest, and which belong to the following categories:

a) essential emergency operations necessary for the immediate restoration to working order of infrastructure
and plant, and the creation of emergency infrastructure to guarantee immediate supplies, in the fields
of energy, drinking water and waste water, telecommunications, transport, health and education, in
order to satisfy the population's needs;

b)

immediate medical assistance and measures to protect the population in the event of a major health
crisis;

c) provision of temporary accommodation and funding of rescue services to meet the immediate needs of

the population concerned;

d) essential emergency operations for the immediate tackling of natural disasters or their immediate

impact, as well as the immediate securing of preventive infrastructures;

e) measures for the immediate protection of the cultural and natural heritage;

f) essential emergency operations for the immediate cleaning up of disaster-stricken areas;

g)

immediate medical assistance to the direct victims of major disasters and terrorist attacks as well as
psychological and social assistance to them and their families.

Article 5

Applications

1.
As soon as possible and no later than ten weeks after the date on which authorities were first alerted
to the original damage caused by the major disaster or crisis situation, an eligible State may submit to the
Commission an application for assistance from the Fund, providing all available information on at least the
following:

a)

the damage caused by the disaster and its impact on the population, the environment and the economy
concerned, and on the cultural and natural heritage;

b) a breakdown of the estimated costs of operations in the categories listed in Article 4 as appropriate to

the disaster;

C 297 E/336

EN

Official Journal of the European Union

7.12.2006

Thursday, 18 May 2006

c) any other sources of Community funding which might contribute to making good the effects of the

disaster;

d) any other sources of national or international funding, including public and private insurance coverage,
which might contribute to the costs of repairing the damage and in particular to the costs of eligible
operations.

The information provided under point (a) of the first subparagraph shall include an estimate of the amount
of total direct damage caused by the disaster or crisis situation. In view of the difficulty of determining the
damage occasioned by disasters whose effects are lasting and ongoing, the Commission may, at the
request of the Member State affected, extend the 10-week time-limit set for applying for assistance under
the Fund.

2.
The Commission shall assess, on the basis of the information referred to in paragraph 1, and of any
additional information, which the Commission may have sought or otherwise obtained, whether the condi-
tions for granting financial assistance under this Regulation are met.

Where, for the purposes of the first subparagraph, additional information is provided by the State concerned
on its own initiative, that information must be received by the Commission within two months of the date
of the application.

However, where, for the purposes of the first subparagraph, the Commission requests additional information
from the State concerned, that information must be received by the Commission within one month of the
date of the request.

Article 6

Advance funding

1.
Immediately upon receipt of an application as referred to in Article 5(1), the Commission may, subject
to budgetary availability, adopt a decision granting advance funding for the most urgent eligible operations
and pay the advance funding to the State concerned in a single instalment without delay.

The first subparagraph shall apply only where the application contains an explicit request for advance
funding.

2.
The amount of advance funding paid pursuant to the first subparagraph of paragraph 1 shall represent
up to 5 % of the of the total of the estimated costs referred to in Article 5(1)(b), but shall not exceed
5 million Euro.

3. Where advance funding is granted a repayment proviso, as referred to in the second subparagraph
of Article 7(2), shall be expressly mentioned.

Article 7

Determination of financial assistance

1.
The Commission shall, on the basis of the assessment carried out pursuant to Article 5(2), determine
as quickly as possible and within two weeks an appropriate amount of financial assistance, if any, to be
granted within the limits of the resources available.

The amount may not exceed 50 % of the total of the estimated costs referred to in Article 5(1)(b).

The accompanying budget proposals, as referred to in Article 8, shall be prepared in parallel with the
determination of the appropriate amount and be presented by the Commission at the same time.

The whole procedure for presenting all necessary proposals to mobilise the Fund, in accordance with the
deadlines laid down in subparagraphs 1 and 3, shall not exceed a period of 3 months after receipt of the
application from the State concerned.

2. Where, on the basis of the assessment carried out pursuant to Article 5(2), the Commission has
concluded that the conditions for granting assistance under this Regulation are not met, it shall notify the
State concerned accordingly as quickly as possible.

Any advance funding paid pursuant to Article 6(1) shall be repaid to the Commission within three months
of the date of that notification.

7.12.2006

EN

Official Journal of the European Union

C 297 E/337

Thursday, 18 May 2006

Article 8

Budget procedure

If the Commission has concluded that financial assistance should be granted from the Fund, it shall
1.
submit to the budgetary authority without delay the proposals needed to authorise appropriations corre-
sponding to the amount determined in accordance with Article 7(1).

Those proposals shall include the following:

a)

the assessment carried out pursuant to Article 5(2), together with a summary of the information on
which that assessment is based;

b) evidence that the conditions laid down in Article 3(1) are met;

c)

the reasons justifying the amounts proposed.

Subject to the appropriations being made available by the budgetary authority, the Commission shall

2.
adopt a grant decision, taking into account any advance funding paid pursuant to Article 6(1).

Article 9

Payment and use of the grant

Following adoption of the grant decision, the Commission shall, within 15 days of signature of the

1.
agreement referred to in Article 10(1), pay the grant to the beneficiary State in a single instalment.

The beneficiary State shall use the grant, as well as any interest earned thereon, within 12 months of
2.
the date of signature of the agreement referred to in Article 10(1) and in any case within 18 months of
the date of first damage, to finance eligible operations carried out after the date on which the disaster or
crisis situation occurred.

Article 10

Implementation of the grant

1.
The Commission and the beneficiary State shall conclude, in accordance with the specific constitu-
tional, institutional, legal or financial provisions of that State and of the Community, an implementation
agreement for the grant decision.

That agreement shall specify in particular the type and location of the operations to be financed.

The Commission shall ensure that the obligations under implementation agreements are the same for

2.
all beneficiary States.

The beneficiary State shall select individual operations and implement the grant in accordance with

3.
this Regulation, the grant decision and the agreement.

That responsibility shall be without prejudice to the responsibility of the Commission for the implementa-
tion of the general budget of the European Communities in accordance with the provisions of the Financial
Regulation applicable to shared or decentralised management.

Article 11

Financing of operations

Operations funded, in whole or in part, under an implementation agreement shall not receive funding

1.
under any other Community or international instrument.

The beneficiary State shall ensure compliance with the first subparagraph.

2.
In particular, in the event of industrial and technological disasters, the ‘polluter pays’ principle
shall apply. Beneficiary States must therefore prove that they are seeking all possible compensation from
third parties.

C 297 E/338

EN

Official Journal of the European Union

7.12.2006

Thursday, 18 May 2006

Article 12

Compatibility with other Instruments

Operations in receipt of financial assistance from the Fund shall be compatible with the provisions of the
Treaty and instruments adopted under it, with Community policies and measures and with pre-accession
assistance instruments.

Article 13

Final report and closure

1.
No later than six months after the end of the period specified in Article 9(2), the beneficiary State
shall present a report to the Commission on the financial execution of the grant, together with a statement
justifying the expenditure and indicating any other source of funding received for the operations concerned.

The report shall detail preventive measures introduced or proposed by the beneficiary State in order to limit
damage and to avoid, as far as possible, a recurrence of similar disasters.

No later than six months after the Commission has received all the information required under para-

2.
graph 1, it shall wind up the financial assistance from the Fund.

Article 14

Use of the Euro

Applications, grant decisions, implementation agreements and reports under this Regulation, as well as any
other related documents, shall express all amounts in Euro.

Article 15

Financial shortfall

1. Where, at the time when a proposal is submitted under Article 8, the remaining financial resources
available for that year for the Fund are not sufficient to cover the amount of financial assistance considered
necessary, the Commission may propose to the European Parliament, which exercises budgetary control,
that the difference be financed from the financial appropriations available for the Fund for the following two
years.

The total annual budgetary ceiling for the Fund in the year in which a disaster occurs and the following

2.
two years shall under all circumstances be respected.

Article 16

Financial control by Community bodies

A beneficiary State shall ensure that all financing decisions adopted pursuant to the implementation agree-
ment provided for in Article 10, and all agreements and contracts resulting from those financing decisions
provide for checks by the Commission, through the Anti-Fraud Office (OLAF), and for on-the-spot checks to
be carried out by the Commission or the Court of Auditors, in accordance with the appropriate procedures.

Article 17

Publicity

A beneficiary State shall clearly inform the population directly concerned and the general public about
assistance received from the Fund.

Article 18

Recovery

1.
In cases where the amount of total direct damage incurred is at least 10 % less than the estimated
amount quoted pursuant to Article 5(1)(b), the Commission may require the beneficiary State to reimburse a
corresponding amount of the financial assistance received.

7.12.2006

EN

Official Journal of the European Union

C 297 E/339

Thursday, 18 May 2006

2. Where a beneficiary State has failed to comply with Article 10(3) or Article 11(2), the Commission
may require the beneficiary State to reimburse all or part of the financial assistance received.

3. Where a beneficiary State has failed to take preventive measures after the previous major disaster
and damage following from a major disaster would have been reduced or prevented had preventive
measures been taken, the Commission shall require the beneficiary State to reimburse all or part of the
financial assistance received.

Prior to the adoption of a Decision under paragraphs 1, 2 or 3 the Commission shall conduct a
4.
suitable examination of the case and shall, in particular, allow the beneficiary State a specified period of
time in which to submit its comments.

Any sum received unduly and to be recovered shall be repaid to the Commission. Default interest may

5.
be charged on sums not repaid in compliance with the Financial Regulation.

Article 19

Technical assistance at the initiative of the Commission

1.
At the initiative of the Commission, subject to a ceiling of 0.20 % of the financial resources available
for that year, the Fund may be used to finance preparatory, monitoring, administrative and technical
support, audit and inspection measures necessary to implement this Regulation.

Those actions shall be executed in accordance with Article 53(2) of the Financial Regulation and any other
provisions of that Regulation and of its implementing rules applicable to this form of execution of the
budget.

Those actions shall in particular include expert reports to assist the Commission in carrying out the assess-
ment of applications pursuant to Article 5(2).

2. Where a contribution from the Fund is foreseen to procure external services, the Commission shall
adopt a decision for the measures listed in the first subparagraph of paragraph 1.

Article 20

Annual report

Before 1 July of each year, with effect from … (*), the Commission shall present to the European Parliament
and to the Council a report on the activities carried out under this Regulation in the previous year. That
report shall in particular contain information relating to applications submitted, grant decisions adopted, the
winding-up of financial assistance granted and the operations carried out.

Article 21

Review

The European Parliament and the Council shall review this Regulation on the basis of a proposal by the
Commission by 31 December 2013 at the latest.

Article 22

Repeal

Regulation (EC) No 2012/2002 is hereby repealed.

References to the repealed Regulation shall be construed as references to this Regulation.

(*) One year after the entry into force of this Regulation.

C 297 E/340

EN

Official Journal of the European Union

7.12.2006

Thursday, 18 May 2006

Article 23

Transitional provision

Regulation (EC) No 2012/2002 shall continue to apply to applications received by the Commission before
the date of entry into force of the present Regulation.

Article 24

Entry into force

This Regulation shall enter into force on the twentieth day following that of its publication in the Official
Journal of the European Communities.

This Regulation shall be binding in its entirety and directly applicable in all Member States.

Done at …, …

For the European Parliament

The President

For the Council

The President

P6_TA(2006)0219

Conclusion of the Energy Community Treaty ***

European Parliament legislative resolution on the proposal for a Council decision on the conclusion
by the European Community of the Energy Community Treaty (13886/1/2005 — COM(2005)0435
— C6-0435/2005 — 2005/0178(AVC))

(Assent procedure)

The European Parliament,

— having regard to the draft Council decision (13886/1/2005),

— having regard to the Treaty establishing the European Community, and in particular Articles 47(2), 55,

83, 89, 95, 133 and 175 thereof,

— having regard to the request for assent submitted by the Council pursuant to Article 300(3), second sub-
paragraph, in conjunction with the first sentence of the first subparagraph of Article 300(2) of the EC
Treaty (C6-0435/2005),

— having regard to Rules 75 and 83(7) of its Rules of Procedure,

— having regard to the recommendation of

the Committee on Industry, Research and Energy

(A6-0134/2006);

1. Gives its assent to conclusion of the agreement;

Instructs its President to forward its position to the Council, the Commission, and the governments and

2.
parliaments of the Member States and of the Contracting Parties to the Energy Community Treaty.