Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL amending Council Regulation (EC) No 2012/2002 establishing the European Union Solidarity Fund
Date: 2013-07-25
Institutions: European Commission
Subjects: accession negotiations, aid to disaster victims, emergency aid, financial aid, fund (EU), natural disaster













EUR-Lex - 52013PC0522 - EN











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52013PC0522

Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL amending Council Regulation (EC) No 2012/2002 establishing the European Union Solidarity Fund /* COM/2013/0522 final - 2013/0248 (COD) */









EXPLANATORY MEMORANDUM
1.           CONTEXT OF THE PROPOSAL
The EU Solidarity Fund (EUSF) was created
in 2002[1]
to enable the EU to respond to major disasters inside the EU and in countries
involved in accession negotiations. The instrument is generally meeting its
objectives well but is considered not to be sufficiently responsive and visible
and as far as certain criteria for its activation are concerned too complicated
and not sufficiently clear.
In 2005 the Commission presented a proposal
for a new EUSF Regulation[2].
While the proposal was favourably received by the European Parliament[3] it was not adopted in the
Council. The Commission officially withdrew the proposal in June 2012.
In October 2011 the Commission presented a
Communication on the Future of the Solidarity Fund[4] which contains an evaluation of
the operations of the current instrument and proposes options for improving its
functioning. An analysis of the current policy was also included in a separate
chapter to the EUSF annual report for 2008[5].
This proposal is situated in the context of
the new Multiannual Financial Framework for the years 2014-2020.
Moreover, the proposal complements the
recent common proposal of the Commission and the High Representative for
implementing arrangements of the Solidarity Clause enshrined in Article 222
TFEU[6] which underlines the role of
the Solidarity Fund as one of the key Union instruments in applying this
provision of the Treaty.
2.           RESULTS OF CONSULTATION
WITH THE INTERESTED PARTIES
The Communication of October 2011 served as a basis for discussions with the Member States and the
European Parliament and other stakeholders.
The European Economic and Social Committee
and the European Parliament adopted reports that very broadly shared the
analysis of the Communication and supported the ideas presented by the
Commission for improving the Fund through a number of adjustments to the
Regulation.[7][8]
Member States expressed their views in
meetings of the COCOF and Structural Actions Working Party of the Council.
3.           Substance of the Proposal
The main objective of the proposal is to
improve the functioning of the existing Solidarity Fund instrument by making it
quicker to respond and more visible to citizens, simpler to use and its
provisions clearer. This is to be achieved by a limited number of technical
adjustments to the Regulation. The principles of the instrument remain
unchanged as do its financing method outside the multiannual financial
framework (MFF) and the likely level of spending.
The proposal contains those adjustments to
the EUSF-Regulation that were discussed in the 2011 Communication on the Future
of the Solidarity Fund:
·                        
A clear definition of the scope of the EUSF
limited to natural disasters including man-made disaster that are the direct
consequence of a natural disaster (cascading effects). This will eliminate
existing legal uncertainties about the scope and thus avoid that applications
are presented which do not meet the conditions.
·                        
A new and simple single criterion for the
exceptional mobilisation of the EUSF for so-called extraordinary regional
disasters based on a GDP-related threshold. As demonstrated in the 2011
Communication the lack of clarity under the current provisions about the
conditions for exceptionally mobilising the EUSF will be eliminated by setting
the damage threshold for regional disasters at 1.5% of GDP at NUTS 2 level.
This will considerably simplify and speed up the preparation of applications by
eligible States and their assessment by the Commission. At the same time it
will significantly reduce the number of rejected applications as applicants
will know from the outset whether the criterion is met. The rate of 1,5% of
regional GDP is proposed as the new threshold because a detailed analysis of
past applications has shown that it will lead to almost identical results as in
the past while achieving considerable simplification and considerably help
speeding up decision-making and paying out grants.
·                        
The introduction of the possibility to make rapid
advance payments upon request of the affected Member State, limited to 10% of
the expected amount of the financial aid capped at EUR 30 million. Recoveries from
the Member States from the Solidarity Fund and from the Cohesion Instruments
(ERDF and Cohesion Fund) up to a maximum annual amount should be made available
to the Solidarity Fund as assigned revenue in order to make committments for
advance payments available in the Union budget. In addition to including a
specific provision in the Solidarity Fund Regulation this will also require
including a provision in the Common Provisions Regulation[9] relating to the Cohesion Policy
Funds and in the transitional provisions relating to the current programming
period. It is envisaged that the Commission will present an amending proposal to
be adopted at the same time as the present proposal.
·                        
The inclusion of a specific provision for slowly
unfolding disasters such as drought. Defining the start of such disasters as
the date at which the public authorities took the first counter-measures will
eliminate legal difficulties stemming from the current obligation to submit
applications within 10 weeks of the date of the first damage.
·                        
The introduction of certain provisions
encouraging more effective disaster prevention, including full implementation
of relevant Union legislation on prevention, the use of available Union funding
for related investments and improved reporting on these actions. In the event
that a disaster of the same nature as one for which the Fund was previously
mobilised should occur and Union legislation has not been complied with, the
Commission will seriously consider rejecting a new application or granting a
reduced amount of aid only.
·                        
The merger of the decision awarding the aid and
the implementation agreements into a single act. This administrative measure
will help to speed up the processing of applications inside the Commission and
therefore allow paying out aid more rapidly.
The recommendations of the performance
audit report of the European Court of Auditors on the financial aid to Italy
for the L'Aquila earthquake[10]
are taken into account by including a clearer definition of the terms
"temporary accommodation" and "immediate emergency
operations" as well as a provision on revenue generation.
Moreover, a number of further elements were
included in the proposal, such as a specific provision on the eligibility of
VAT and the exclusion of Technical Assistance, a provision requiring respect
for the Union acquis, a revised provision to avoid double financing, extended
ex-post reporting on prevention measures and a provision on the use of the Euro
and its conversion into national currencies.
Lastly, a number of modifications are
introduced to bring the Regulation in line with the Financial Regulation as
amended in 2012. This concerns not only terminology but in particular certain rules
and obligations in relation the implementation of the Fund by Member States
under the principle of shared management and by eligible candidate countries
(countries negotiating the accession to the Union) under the principle of
indirect management. In order not to put at risk the objectives of the Fund,
i.e. to make financial assistance available as quickly as possible after the
occurrence of a major disaster, it is however necessary to derogate from
certain provisions of the Financial Regulation, in particular as concerns the
normally time-consuming process of designating the implementing authorities,
including those for audit and control, as well as regarding the timing of
annual reporting.
4.           LEGAL ELEMENTS OF THE
PROPOSAL
Legal basis
The legal basis of this proposal is Article
175 third subparagraph and Article 212 second paragraph of the Treaty on the
Functioning of the European Union which corresponds with the legal base of the
current Regulation. Recourse to Article 212 is necessary to include non-Member
States that are in the process of negotiating their accession to the EU.
While the Solidarity Fund is to be seen as
one of the Union instruments for the implementation of the Solidarity Clause
enshrined in Article 222 TFEU the latter is not appropriate as legal basis for
the Fund. Article 222 is reserved for the most serious of crisis situations
whereas the criteria for the activation of the Solidarity Fund are defined in a
way leading to the use of the Fund several times each year. Under the
legislative procedure foreseen by Article 222 the European Parliament is
informed but not actively involved; this is not in line with the provisions of
the Fund fully involving the Parliament in raising the appropriations for
Solidarity Fund financial aid. Moreover, the Solidarity Fund includes certain
non-Member States not covered by Article 222.
Subsidiarity principle
The proposal respects the subsidiarity
principle and does not go beyond what is necessary to achieve the objectives of
the Solidarity Fund as established in 2002. The current Solidarity Fund
Regulation itself is based on the subsidiarity principle. Accordingly, the Fund
intervenes only in cases where the capacity of a disaster-stricken country to
deal with the situation alone reaches its limits. The objective is not to deal
with disasters at EU level but to grant affected countries financial aid to
help them bear the financial burden inflicted on them as a consequence of a
natural disaster The proposal does not touch on these constituent principle nor
does it change the eligibility criteria for disasters to be accepted.
Proportionality principle
The proposal respects the proportionality
principle. It does not go beyond what is necessary to achieve the objectives
already lead down in the current instrument.
5.           BUDGETARY IMPLICATIONS
The proposal takes account of the Multi-annual
Financial Framework 2014 – 2020 which foresees maintaining the current mechanism
whereby the necessary budgetary resources for awarding financial aid are raised
over and above the MFF ceilings by a decision of the budget authority within a
maximum annual allocation of EUR 500 million (2011 prices).
The decision to express the maximum annual
allocation of the Fund in 2011 prices (instead of current prices) is mirrored in
the proposal by applying the same basis to the amount of
EUR 3 billion which is one of the two damage threshold for defining
'major disasters'. The other threshold defined as 0.6% of gross national income
is not affected.
In cases where an advance has been paid its
amount will be taken into account when the final contribution from the Fund is
paid out.
2013/0248 (COD)
Proposal for a
REGULATION OF THE EUROPEAN PARLIAMENT
AND OF THE COUNCIL
amending Council Regulation (EC) No
2012/2002 establishing the European Union Solidarity Fund
THE EUROPEAN PARLIAMENT AND THE
COUNCIL OF THE EUROPEAN UNION,
Having regard to the Treaty on the
Functioning of the European Union, and in particular the third subparagraph of Article
175 and Article 212(2) thereof,
Having regard to the proposal from the European
Commission,
After transmission of the draft legislative
act to the national parliaments,
Having regard to the opinion of the European
Economic and Social Committee([11]),
Having regard to the opinion of the
Committee of the Regions([12]),
Acting in accordance with the ordinary
legislative procedure,
Whereas:
(1)       Council
Regulation (EC) No 2012/2002 of 11 November 2002 establishes the European Union
Solidarity Fund ('the Fund')[13].
(2)       The
Union should continue to show solidarity with the countries currently
negotiating their accession. The inclusion of those countries in the scope of
this Regulation entails recourse to Article 212 of the Treaty as a legal basis.

(3)       The
Commission should be in a position to decide rapidly on committing specific
financial resources and mobilising them as quickly as possible. Administrative
procedures should be adjusted accordingly and confined to the minimum
necessary. To this end, the European Parliament, the Council and the Commission
have concluded on [dd/mm/yyyy] an Inter-Institutional Agreement on the
financing of the Fund, on budgetary discipline and improvement of the budgetary
procedure. 
(4)       The terminology and
procedures under Regulation (EC) No 2012/2002 should be aligned with the provisions of Regulation (EU, Euratom) No
966/2012 of the European Parliament and of the Council of 25 October 2012 on
the financial rules applicable to the general budget of the Union and repealing
Council Regulation (EC, Euratom) No 1605/2002[14].
(5)       The
definition of a natural disaster, which determines the scope of Regulation (EC)
No 2012/2002, should be unambiguous. 
(6)       Damage
caused by other types of disaster that through a cascading effect are the
direct consequence of a natural disaster should, for the purposes of Regulation
(EC) No 2012/2002, be considered to be part of the direct damage caused by that
natural disaster.
(7)       In
order to codify the established practice and to ensure equal treatment of
applications it should be specified that contributions from the Fund are to be
awarded in respect of direct damage only. 
(8)       A
'major natural disaster' within the meaning of Regulation (EC) No 2012/2002 should
be defined as having caused direct damage above a threshold expressed in
financial terms and should be expressed in prices of a reference year, or as a
percentage of the gross national income (GNI) of the State concerned.
(9)       In
order to better take into account the specific nature of those disasters which,
although important, do not reach the minimum scale required to benefit from a
contribution from the Fund, the criteria for regional disasters should be determined
based on the damage calculable by reference to regional gross domestic product (GDP).
Those criteria should be determined in a clear and simple manner in order to
reduce the possibility of applications being submitted which do not meet the
requirements set out in Regulation (EC) No 2012/2002.
(10)     For
the purposes of determining direct damage, data with a harmonised format, provided
by EUROSTAT, should be used in order to allow an equitable treatment of
applications. 
(11)     The
Fund should contribute to the restoration of infrastructure to working order,
to the cleaning up of disaster‑stricken zones and to the costs of the rescue services
and for temporary accommodation for the population concerned during the whole implementation
period. The time-span during which the accommodation of people made homeless by
the disaster may be considered temporary should also be defined.
(12)     The
provisions of Regulation (EC) No 2012/2002 should be aligned with the general Union
funding policy in relation to value added tax. 
(13)     It
should also be specified that eligible operations should not include
expenditure for technical assistance.
(14)     In
order to exclude that beneficiary States make a net profit from the
intervention of the Fund, the conditions under which operations financed by the
Fund may generate revenue should be specified.
(15)     Certain
types of natural disaster, such as droughts, are developing over a longer
period of time before their disastrous effects are felt. Provision should be
made to allow the use of the Fund also in such cases.
(16)     It is important to ensure
that the eligible States make the requisite efforts to prevent disasters from
occurring and to mitigate their effects, including by full implementation of
relevant Union legislation on disaster risk prevention and
management and the use of available Union funding for relevant
investments. Provision should therefore be made that a failure
of the Member State to comply with relevant Union
legislation on disaster risk prevention and management, after
having received a contribution from the Fund for an earlier natural disaster, may
result in the rejection of the application or a reduction
of the amount of contribution in the event of a further application for a
disaster of the same nature.
(17)     Member
States may require financial support in response to a disaster more rapidly
than is possible through the normal procedure. For this purpose, it is
appropriate to provide for the possibility of making an advance payment upon
request by the Member State concerned shortly after the application for a
contribution from the Fund has been submitted to the Commission. The advance
should not exceed a certain amount and it should be accounted for when the
final amount of the contribution is paid out. Moreover, amounts from the Fund and from the European Regional Development Fund
and the Cohesion Fund recovered from the Member States should, up to a certain maximum
amount, be considered as internal assigned revenue in order to make commitments
for advance payments available in the Union budget. The payment of an advance
should not prejudge the final decision on the mobilisation of the Fund.
(18)     Administrative
procedures leading up to the payment of a contribution should be as simple and
time-efficient as possible. For Member States, detailed provisions on the implementation
of the contribution from the Fund should therefore be contained in the implementing
decisions awarding that contribution. However, for beneficiary States which are
not yet Member States of the Union, separate implementation agreements should
be maintained for legal reasons. 
(19)     Regulation
(EU, Euratom) No 966/2012 has introduced changes in shared and indirect
management, including specific reporting requirements which should be taken
into account. Reporting obligations should reflect the short implementation
period of the Fund operations. The procedures for the designation of the bodies
responsible for the management and control of the Union funds should reflect
the nature of the instrument and not delay the payment of the contribution from
the Fund. It is therefore necessary to derogate from Regulation (EU, Euratom)
No 966/2012.
(20)     Provision
should be made to avoid double financing of operations financed by the Fund with
other financial instruments of the Union or international legal instruments
relating to the compensation of specific damage.
(21)     Declaring
expenditure that countries have made from a contribution from the Fund should
be as simple as possible. A single exchange rate should therefore be used
throughout the implementation of the contribution for countries that are not
members of the euro area.
(22)     In order to ensure uniform
conditions for the implementation of Regulation (EC) No
2012/2002 with respect to awarding the contribution from
the Fund, implementing
powers should be conferred on the Commission.
(23)     The provisions governing
the protection of financial interests of the Union should be made more specific
so as to clearly identify measures for the prevention, detection and
investigation of irregularities, the recovery of funds lost, wrongly paid or
incorrectly used.
(24)     Since the objectives of
this Regulation, namely to ensure Union-wide solidarity action to support a
disaster stricken State, cannot be sufficiently achieved by the Member States on
an ad-hoc basis and can therefore, by reason of applying a systematic, regular
and equitable method of granting financial support involving all Member States
according to their capacity, be better achieved at Union level, the Union may
adopt measures, in accordance with the principle of subsidiarity as set out in
Article 5 of the Treaty on European Union. 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.
(25)     Regulation
(EC) No 2012/2002 should therefore be amended accordingly.
HAVE
ADOPTED THIS REGULATION:
Article 1
Regulation (EC) No 2012/2002 is amended as
follows:
(1)                   
Article 2 is replaced by the following:
'Article 2
1.       At the request of a Member State or
country involved in accession negotiations with the Union, assistance from the
Fund may be mobilised when serious repercussions on living conditions, the
natural environment or the economy occur in one or more regions of that State or
country as a consequence of a major or regional natural disaster having taken
place on the territory of the same State or country, a neighbouring Member
State or a neighbouring country involved in accession negotiations with the
Union (hereinafter referred to as ‘eligible State’). Direct damage caused by a
man-made disaster that is the direct consequence of a natural disaster shall be
regarded as part of the direct damage caused by that natural disaster. 
2.       For the purposes of this Regulation, a
‘major natural disaster’ shall mean any natural disaster resulting, in a Member
State or a country involved in accession negotiations with the Union, in direct
damage estimated either at over EUR 3 000 000 000 in 2011 prices,
or more than 0,6 % of its gross national income (GNI).
3.       For the purposes of this Regulation, a
‘regional natural disaster’ shall mean any natural disaster resulting, in a
region of a Member State or a country involved in accession negotiations with
the Union at NUTS 2 level, in direct damage in excess of 1,5 % of the region's
gross domestic product (GDP). Where the disaster concerns several regions at
NUTS 2 level, the threshold shall be applied to the weighted average GDP of
those regions.
4.       Assistance from the Fund may also be
mobilised for any natural disaster in an eligible State which is a major
natural disaster in a neighbouring Member State or a country involved in
accession negotiations with the Union.
5.       For the purpose of this Article
harmonised statistical data provided by EUROSTAT shall be used.’ 
(2)                   
Article 3 is amended as follows:
(a)         
Paragraphs 1, 2 and 3 are replaced by the
following:
'1.         The assistance shall take the form of
a contribution from the Fund. For each natural disaster a single contribution
shall be awarded to an eligible State.
2.          The aim of the Fund is to
complement the efforts of the States concerned and to cover part of their
public expenditure in order to help the eligible State to carry out the
following essential emergency and recovery operations, depending on the type of
disaster:
(a)          
restoring the working order of infrastructure
and plant in the fields of energy, water and waste water, telecommunications,
transport, health and education;
(b)         
providing temporary accommodation and funding
rescue services to meet the needs of the population concerned;
(c)          
securing of preventive infrastructures and
measures of protection of the cultural heritage;
(d)         
cleaning up of disaster-stricken areas,
including natural zones.
For the purposes of point (b), 'temporary
accommodation' shall mean accommodation lasting until the population concerned is
able to return to their original homes following their repair or reconstruction.
3.          Payments from the Fund are limited
to financing measures alleviating non‑insurable damage and shall be recovered
if the cost of repairing the damage is subsequently met by a third party in
accordance with Article 8(3).',
(b)         
The following paragraphs 4 to 7 are added:
'4.         Value added tax (VAT) shall not
constitute eligible expenditure of an operation, except in the case of VAT
which is non-recoverable under national VAT legislation.
5.          Technical assistance, including management,
monitoring, information and communication, complaint resolution, and control
and audit, is not eligible for a contribution from the Fund.
6.          The total contribution from the
Fund shall not lead to the generation of revenue exceeding the total cost of
emergency and recovery operations borne by a State. The beneficiary State shall
include a statement to that effect in the report on the implementation of the
contribution from the Fund pursuant to Article 8(3).
7.          On 1 October each year, at least
one-quarter of the annual amount should remain available in order to cover
needs arising until the end of the year.';
(3)                   
Article 4 is amended as follows:
(a)         
Paragraph 1 is replaced by the following:
'1.         As soon as possible and no later
than ten weeks after the first occurrence of damage as a consequence of a natural
disaster, a State may submit an application for a contribution from the Fund to
the Commission providing all available information on, at least:
(a)          
the total direct damage
caused by the disaster and its impact on the population, the economy and the
environment concerned;
(b)         
the estimated cost of the operations referred to in
Article 3(2);
(c)          
any other sources of Union funding;
(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;
(e)          
the implementation of Union legislation on disaster
risk prevention and management related to the nature of the disaster;
(f)           
any other relevant information
on prevention and mitigation measures taken related to the
nature of the disaster.’,
(b)         
Paragraph 1a is inserted:
'1a.       In the event of a progressively unfolding
natural disaster, the ten‑week application deadline referred to in paragraph 1
shall run from the date at which the public authorities of the eligible State
take official action for the first time against the effects of the disaster.',
(c)         
Paragraph 2 is replaced by the following:
'2.         On the basis of the information
referred to in paragraph 1, and any clarifications to be provided by the eligible
State, the Commission shall assess whether the conditions for mobilising the
Fund are met and shall determine the amount of any possible contribution from
the Fund as quickly as possible within the limits of the financial resources
available. 
If the Commission has awarded a contribution
from the Fund based on an application received after [dd//mm/yyyy] for a
disaster of a given nature, it may reject a further application for a
contribution relating to a disaster of the same nature or reduce the amount to
be awarded where the eligible Member State is the subject of infringement
proceedings and has been issued with a reasoned opinion for having failed to
implement Union legislation on disaster risk prevention and management the
subject matter of which corresponds to the nature of the disaster suffered.
The Commission shall treat all applications for
a contribution from the Fund in an equitable manner.',
(d)         
Paragraph 4 is replaced by the following:
'4.         Once the appropriations are made
available by the budgetary authority, the Commission shall adopt an implementing
decision awarding the contribution from the Fund and shall pay that contribution
immediately and in a single instalment to the beneficiary State. If an advance
has been paid pursuant to Article 4a only the balance shall be paid.',
(e)         
Paragraph 5 is replaced by the following:
'5.         The eligibility of expenditure
shall begin on the date of the first damage referred to in paragraph 1. In the
event of a progressively unfolding natural disaster the eligibility of
expenditure shall begin on the date referred to in paragraph 1a.';
(4)                   
The following Article 4a is inserted:
'Article 4a
1.       When submitting an application for a
contribution from the Fund to the Commission, a Member State may request the
payment of an advance.
The Commission shall make a preliminary assessment
of whether the application fulfils the conditions laid down in Article 4(1) and
verify the availability of budgetary resources. Where those conditions are
fulfilled and sufficient resources are available, the Commission may adopt a
decision awarding the advance and pay it out without delay before the decision
referred to in Article 4(4) has been taken. The payment of an advance shall be
made without prejudice to the final decision on the mobilisation of the Fund.
2.       The amount of the advance shall not
exceed 10 % of the amount of the contribution anticipated and shall in no
case exceed EUR 30 000 000. Once the definitive amount of the contribution
has been determined, the Commission shall take into account the sum of the
advance prior to the balance of the contribution being paid. The Commission
shall recover unduly paid advances. 
3.       In order to ensure the timely
availability of budgetary resources, the amounts from the Fund, from the
European Regional Development Fund and the Cohesion Fund recovered from the
Member States shall, up to a maximum of EUR 50 000 000, be made
available to the Fund as internal assigned revenue. Amounts spent for advance
payments or having been decommitted in the budget shall be replaced as soon as new
amounts are recovered from the Member States.’ 
(5)                   
Article 5 is replaced by the following:
'Article 5
1.       The decision referred to in Article 4(4)
shall contain in its annex detailed provisions for the implementation of the contribution
from the Fund. 
Those provisions shall describe, in particular,
the type and location of operations to be financed by the Fund following a
proposal by the eligible State.
2.       Before paying out a contribution from
the Fund to an eligible State
that is not a Member State, the Commission shall conclude a delegation
agreement with that State laying down detailed provisions for the
implementation of the contribution from the Fund referred to in paragraph 1 in
accordance with Regulation (EU, Euratom) No 966/2012 of the European
Parliament and of the Council* and
Commission Delegated Regulation (EU) No 1268/2012**, as well as the obligations
relating to disaster risk prevention and management. 
3.       Responsibility for selecting
individual operations and implementing the contribution from the Fund shall lie
with the beneficiary State, in accordance with this Regulation, in particular
Article 3(2) and (3), the decision referred to in Article 4(4) awarding the contribution
from the Fund and, where applicable, the delegation agreement referred to in
paragraph 2. 
4.       The contribution from the Fund to a
Member State shall be implemented within the framework of shared management in
accordance with Regulation (EU, Euratom) No 966/2012. The contribution from the Fund to a country
involved in accession negotiations with the Union shall
be implemented within the framework of indirect management in accordance with that
Regulation.
5.       Without prejudice to the Commission's
responsibility for implementing the general budget of the Union, beneficiary
States shall take responsibility for the management of operations supported by
the Fund and the financial control of the operations. The measures they take
shall include:
(a)         
verifying that management and control
arrangements have been set up and are being implemented in such a way as to
ensure that Union funds are being used efficiently and correctly, in accordance
with the principles of sound financial management;
(b)         
verifying that the financed actions have been
properly carried out;
(c)         
ensuring that expenditure funded is based on
verifiable supporting documents, and is correct and regular;
(d)         
preventing, detecting and correcting
irregularities and recovering amounts unduly paid together with interest on
late payments where appropriate. They shall notify any such irregularities to
the Commission, and keep the Commission informed of the progress of
administrative and legal proceedings.
6.       Beneficiary
States shall designate bodies responsible for the management and control of the
operations supported by the Fund in accordance with Articles 59 and 60 of
Regulation (EU, Euratom) No
966/2012. In doing so they shall take into account criteria on internal
environment, control activities, information and communication, and monitoring.
Member States may designate the bodies already designated under the [Common
Provisions Regulation][15].
These designated bodies shall provide the
Commission with the information set out in Article 59(5) or Article 60(5) of
Regulation (EU, Euratom) No
966/2012 covering the whole of the implementation period when submitting the
report and the statement referred to in Article 8(3) of this Regulation.
7.       The
beneficiary State shall make the financial corrections required where an
irregularity is ascertained. The corrections made by the beneficiary State shall
consist in cancelling all or part of the contribution from the Fund. The
beneficiary State shall recover any amount lost as a result of an irregularity
detected.
8.       Without prejudice to the powers of the
Court of Auditors or the checks carried out by the beneficiary State in
accordance with national laws, regulations and administrative provisions,
Commission officials or other servants may carry out on-the-spot checks on the
operations financed by the Fund. The Commission shall give notice to the beneficiary
State with a view to obtaining all the assistance necessary. Officials or other
servants of the Member State concerned may take part in such checks.
9.       The beneficiary State shall ensure
that all supporting documents regarding expenditure incurred are kept available
for the Commission and the Court of Auditors for a period of three years
following the winding-up of the assistance from the Fund.’
______________
* OJ L 298, 26.10.2012,
p.1.
** OJ L
362, 31.12.2012, p.1.';
(6)                   
In Article 6, paragraphs 2 and 3 are replaced by
the following:
'2.      The beneficiary State shall ensure
that expenditure reimbursed in accordance with this Regulation shall not be
reimbursed through other Union financing instruments in particular through instruments
of cohesion, agricultural or fisheries policy. 
3.       Damage repaired under Union or
international instruments relating to the compensation of specific damage shall
not, for the same purpose, be eligible for assistance from the Fund.'; 
(7)                   
Article 7 is replaced by the following:
'Article 7
Operations financed by the Fund shall be
compatible with the provisions of the Treaty and instruments adopted under it,
with Union policies and measures, in particular in the fields of financial
management and public procurement, and with pre-accession assistance
instruments. Those operations shall contribute, where possible, to the
objectives of Union policies on environmental protection, disaster risk
prevention and management and climate change adaptation.';
(8)                   
Articles 8 and 9 are replaced by the following:
'Article 8
1.       The contribution from the Fund shall
be used within one year from the date on which the Commission has disbursed the
full amount of the assistance. Any part of the contribution remaining unused by
that deadline or found to be used for ineligible operations shall be recovered
by the Commission from the beneficiary State.
2.       Beneficiary States shall seek all
possible compensation from third parties.
3.       No later than six months after the expiry
of the one-year period referred to in paragraph 1, the beneficiary State shall
present a report on the implementation of the contribution from the Fund with a
statement justifying the expenditure, indicating any other source of funding
received for the operations concerned, including insurance settlements and
compensation from third parties.
The implementation report shall detail the
preventive measures introduced or proposed by the beneficiary State to limit
future damage and to avoid, to the extent possible, a recurrence of similar
disasters, including the use of Union structural and investment funds for this
purpose, and the state of implementation of relevant Union legislation on disaster
risk prevention and management. It shall also report on experience gained from
the disaster and the measures taken or proposed to ensure resilience in
relation to climate change and disasters.
The implementation report shall be accompanied
by an opinion of an independent audit body, drawn up in accordance with
internationally accepted audit standards, establishing that the statement
justifying the expenditure gives a true and fair view and that the contribution
from the Fund is legal and regular, in line with Article 59(5) and Article
60(5) of Regulation (EU, Euratom) No 966/2012.
At the end of the procedure referred to in the
first subparagraph, the Commission shall wind up the assistance from the Fund.
4. Where the cost of repairing the damage is
subsequently met by a third party, the Commission shall require the beneficiary
State to reimburse a corresponding amount of the contribution from the Fund.
Article 9
Applications for a contribution from the Fund
and the decisions referred to in Article 4(4), as well as the delegation agreement,
reports and any other related documents shall express all amounts in euros.
Amounts of expenditure incurred in national
currencies shall be converted into euros at the average of the daily exchange
rates published in the C series of the Official
Journal of the European Union determined over the period of implementation of the operations covered
by the contribution from the Fund. Where no daily euro exchange rate is
published in the Official Journal of the European Union for the currency
in question, conversion shall be made at the average of the monthly accounting
rates established by the Commission, determined over that period. This single exchange rate shall be used throughout the
implementation of the contribution from the Fund and as the basis for the final
implementation report and the statement on the implementation and the elements
required under Article 59(5) or Article 60(5) of Regulation (EU, Euratom) No 966/2012 of the contribution.'; 
(9)                   
In Article 10, paragraph 2 is replaced by the
following:
'2.      In case of significantly lower
valuation of the damage incurred, as shown by new elements, the beneficiary
State shall reimburse to the Commission the corresponding amount of the
contribution from the Fund.';
(10)               
Article 11 is replaced by the following:
'Article 11
1.       The Commission shall take appropriate
measures ensuring that, when actions financed under this Regulation are
implemented, the financial interests of the Union are protected by the
application of preventive measures against fraud, corruption and any other
illegal activities, by effective checks and, if irregularities are detected, by
the recovery of the amounts wrongly paid and, where appropriate, by effective,
proportionate and dissuasive administrative and financial penalties.
2.       The Commission or its representatives
and the Court of Auditors shall have the power of audit, on the basis of
documents and on the spot, over all funding beneficiaries,
contractors, subcontractors who have received Union
funds under this Regulation.
3.       The European Anti-Fraud Office (OLAF)
may carry out investigations, including on-the-spot checks and inspections, in
accordance with the provisions and procedures laid down in Regulation (EC) No
1073/1999 of the European Parliament and of the Council[16] and Council Regulation
(Euratom, EC) No 2185/96[17]
with a view to establishing whether there has been fraud, corruption or any
other illegal activity affecting the financial interests of the Union in
connection with a contract concerning Union funding.
4.       Without prejudice to paragraphs 1, 2
and 3, delegation agreements with third countries, contracts
and decisions awarding a contribution from the Fund
resulting from the implementation of this Regulation shall contain provisions expressly
empowering the Commission, the Court of Auditors and OLAF to conduct such
audits and investigations, according to their respective competences.' 
(11)               
Articles 13 and 14 are deleted.
Article 2
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 Union.
This
Regulation shall be binding in its entirety and directly applicable in all
Member States.
Done at Brussels, 
For the European Parliament                       For
the Council
The President                                                 The
President
LEGISLATIVE FINANCIAL STATEMENT
1.           FRAMEWORK OF THE PROPOSAL/INITIATIVE 
1.1.        Title of the proposal/initiative

Proposal for a Regulation of the European
Parliament and of the Council amending Council Regulation (EC) No 2012/2002
establishing the European Union Solidarity Fund.
1.2.        Policy area(s) concerned
in the ABM/ABB structure[18] 
EU Solidarity Fund; ABB activity 13.06
1.3.        Nature of the
proposal/initiative 
¨ The proposal/initiative relates to a new action 
¨ The proposal/initiative relates to a new action
following a pilot project/preparatory action[19]

¨ The proposal/initiative relates to the
extension of an existing action 
¨ The proposal/initiative relates to an action
redirected towards a new action 
1.4.        Objective(s)
1.4.1.     The Commission's
multiannual strategic objective(s) targeted by the proposal/initiative 
1.4.2.     Specific objective(s) and
ABM/ABB activity(ies) concerned 
Specific objective No N/A
ABM/ABB activity(ies) concerned 13.06
1.4.3.     Expected result(s) and
impact
The main objective of the proposal is to
improve the functioning of the existing Solidarity Fund instrument by making it
quicker to respond and more visible to citizens, simpler to use and its
provisions clearer which is sought to be achieved by way of a limited number of
technical adjustments to the Regulation. The principles of the instrument
remain unchanged just as its financing method outside the EU budget based on an
inter-institutional agreement and the likely level of spending.
1.4.4.     Indicators of results and
impact 
The Fund intervenes only in cases where the
capacity of a disaster-stricken country to deal with the situation alone
reaches its limits (subsidiarity principle). The objective is not to deal with
disasters at EU level but to grant affected countries financial assistance to
help them bear the financial burden inflicted on them as a consequence of a
natural disaster.
1.5.        Grounds for the
proposal/initiative 
1.5.1.     Requirement(s) to be met in
the short or long term 
To respond to request from eligible countries
(Member States and countries negotiating their accession to the EU) for financial
assistance following natural disasters
1.5.2.     Added value of EU
involvement
This proposal is situated in the context of the new Multiannual Financial Framework for the years
2014-2020.
Moreover, the proposal complements the recent
common proposal of the Commission and the High Representative for implementing
arrangements of the Solidarity Clause enshrined in Article 222 TFEU[20] which underlines the role of the Solidarity
Fund as one of the key Union instruments in applying this provision of the
Treaty.
1.5.3.     Lessons learned from
similar experiences in the past
The introduction of clearer criteria and
simpler procedures as well as the possibility of an advance payment in order to
provide a faster reaction
1.5.4.     Compatibility and possible
synergy with other appropriate instruments
The Fund complements other EU instruments in
the field of risk prevention, mitigation and rapid response (in particular
Cohesion Policy instruments and the Civil Protection Mechanism)
1.6.        Duration and financial
impact 
¨ Proposal/initiative of limited
duration 
–     
¨  Proposal/initiative in effect from [DD/MM]YYYY to [DD/MM]YYYY 
–     
¨  Financial impact from YYYY to YYYY 
¨ Proposal/initiative of unlimited
duration
–     
Implementation with a start-up period from YYYY
to YYYY,
–     
followed by full-scale operation.
1.7.        Management mode(s) planned[21] 
For the 2013 budget: not applicable
¨ Centralised direct management by the Commission 
¨ Centralised indirect management with the delegation of implementation tasks to:
–     
¨  executive agencies 
–     
¨  bodies set up by the Communities[22]

–     
¨  national public-sector bodies/bodies with public-service mission 
–     
¨  persons entrusted with the implementation of specific actions
pursuant to Title V of the Treaty on European Union and identified in the
relevant basic act within the meaning of Article 49 of the Financial Regulation

¨ Shared management with the Member States 
¨ Decentralised management with third countries 
¨ Joint management with international organisations (to be specified)
–       If more than one management mode is
indicated, please provide details in the "Comments" section.
From the 2014 budget
¨ Direct management by the Commission
–     
¨ by its departments, including by its staff in the Union
delegations; 
–     
¨  by the executive agencies; 
¨ Shared management with the Member States 
¨ Indirect management by delegating implementation tasks to:
–     
¨ third countries or the bodies they have designated;
–     
¨ international organisations and their agencies (to be specified);
–     
¨the EIB and the European Investment Fund;
–     
¨ bodies referred to in Articles 208 and 209 of the Financial
Regulation;
–     
¨ public law bodies;
–     
¨ bodies governed by private law with a public service mission to the
extent that they provide adequate financial guarantees;
–     
¨ bodies governed by the private law of a Member State that are
entrusted with the implementation of a public-private partnership and that
provide adequate financial guarantees;
–     
¨ persons entrusted with the implementation of specific actions in
the CFSP pursuant to Title V of the TEU, and identified in the relevant basic
act.
–       If more than one management mode is
indicated, please provide details in the "Comments" section.
Comments 
Countries eligible to the Fund are:
1.           Member States to which the
principles of shared management apply. The details on the designation of the
authorities involved in the implementation, audit and control including
reporting obligations are laid down in the Regulation.
2.           Countries in the process
of negotiating their accession to the Union to which the principles of indirect
management apply. Before paying out a contribution from
the Fund to an eligible State
that is not a Member State, the Commission will conclude a delegation agreement
with that State laying down detailed provisions for the implementation of the
contribution from the Fund in accordance with the
Financial Regulation and comparable to those applicable to Member States.
2.           MANAGEMENT MEASURES 
2.1.        Monitoring and reporting
rules 
The established monitoring system is not
modified by this proposal and is based on a system of shared management for Member
States and indirect management for eligible candidate countries with comparable
obligations. It is adapted to the short implementation period (1 year) and the
specificity of the instrument in replying to emergency situations. A final report is required on the implementation of the
contribution from the Fund within six months after the
expiry of the one-year period. This report has to give details on the
implementation system adopted, including audit and control work as well as a
complete presentation of operations. In addition, the designated body will have
to comply with the reporting requirements under Articles 59(5) or 60(5) as
appropriate, for the whole period of implementation of the operation.
2.2.        Management and control
system 
2.2.1.     Risk(s) identified 
The beneficiary state sends a request which is
appraised by the Commission. If the request fulfils the conditions, a 10%
advance will be paid. Closure is done based on the final report, at which time
the 10% advance will also be cleared. Advances will be paid based on a specific
technique introduced in the Structural Funds regulation using recoveries from
the ERDF and Cohesion Fund. The proposed architecture is an evolution of the
current situation.
The recommendations of the performance audit
report of the European Court of Auditors on the financial aid to Italy for the
L'Aquila earthquake[23]
are taken into account by including a clearer definition of the terms
"temporary accommodation" and "immediate emergency
operations" as well as a provision on revenue generation. 
Moreover, a number of further elements were
included in the proposal, such as a specific provision on the eligibility of
VAT and the exclusion of Technical Assistance, a provision requiring respect
for the Union acquis, a revised provision to avoid double financing,
extended ex-post reporting on prevention measures and a provision on the use of
the Euro and its conversion into national currencies.
2.2.2.     Information concerning the
internal control system set up
The annex to each decision shall provide
detailed provisions for the implementation of the contribution from the Fund.
For non-Member States these provisions will be laid down in the delegation
agreement. There is no change compared with current Regulation. The body will
be designated by the beneficiary state. The
contribution from the Fund to a Member State shall be implemented within the
framework of shared management between the Member States and the Commission, in
accordance with the Financial Regulation. A contribution from the Fund to
States that are not yet a member of the Union shall be implemented within the
framework of indirect management.
Without prejudice to the Commission's
responsibility for implementing the general budget of the European Union,
beneficiary States shall take responsibility in the first instance for the
management of actions supported by the Fund and the financial control of the
actions. To that end, they shall verify that management and control
arrangements have been set up and are being implemented in such a way as to
ensure that Union funds are being used efficiently and correctly, in accordance
with the principles of sound financial management; verify that the financed
actions have been properly carried out; and ensure that expenditure funded is
based on verifiable supporting documents, and is correct and regular. 
The Commission shall take every step necessary
to verify that the actions financed are carried out in accordance with the
principles of sound financial management. It is the responsibility of the beneficiary
State to ensure that it has effectively functioning management and control
systems. The Commission shall satisfy itself that such systems are in place.
Without prejudice to the powers of the Court of Auditors or the checks carried
out by the beneficiary State in accordance with national laws, regulations and
administrative provisions, Commission officials or servants may carry out
on-the-spot checks, on the actions financed by the Fund. The Commission shall
give notice to the applicant beneficiary State with a view to obtaining all the
assistance necessary. Officials or servants of the beneficiary State concerned
may take part in such checks. 
2.2.3.     Estimate of the costs and
benefits of the controls and assessment of the expected level of risk of error 
A new and simple single criterion for the
exceptional mobilisation of the EUSF for so-called extraordinary regional
disasters based on a GDP-related threshold. As demonstrated in the 2011
Communication the lack of clarity under the current provisions about the
conditions for exceptionally mobilising the EUSF will be eliminated by setting
the damage threshold for regional disasters at 1.5% of GDP at NUTS 2 level.
This will considerably simplify and speed up the preparation of applications by
eligible States and their assessment by the Commission. At the same time it
will significantly reduce the number of rejected applications as applicants
will know from the outset whether the criterion is met. This should reduce the
cost of controls. 
Audits carried out by the Commission and the
European Court of Auditors have not given rise to issues which would prevent
from having a reasonable assurance on the use of the Fund in the past. The
overall estimated error rate is below the materiality threshold of 2%.
2.3.        Measures to prevent fraud
and irregularities 
Primary responsibility for taking appropriate
measures against fraud and irregularities lies with the beneficiary State which
has to appoint an audit body and, if necessary require the recovery of irregular
spending. A summary of the audits and controls carried out during the
implementation period should be submitted to the Commission in accordance with
the Financial Regulation. Audits can be carried out at any time by Commission
auditors, the Court of Auditors or OLAF.
3.           ESTIMATED FINANCIAL IMPACT OF THE
PROPOSAL/INITIATIVE 
3.1.        Heading(s) of the
multiannual financial framework and expenditure budget line(s) affected 
·      Existing budget lines 
In order of
multiannual financial framework headings and budget lines.
 Heading of multiannual financial framework || Budget line || Type of expenditure || Contribution 
 Number […]Heading………………………………………...……….] || Diff./non-diff. ([24]) || from EFTA countries[25] || from candidate countries[26] || from third countries || within the meaning of Article 21(2)(b) of the Financial Regulation 
 3 || 13.060100 || Diff || NO || NO || NO || NO 
 4 || 13.060200 || Diff || NO || NO || NO || NO 
·      New budget lines requested 
In order of multiannual financial framework
headings and budget lines.
 Heading of multiannual financial framework || Budget line || Type of expenditure || Contribution 
 Number […]Heading………………………………………...……….] || Diff./non-diff. || from EFTA countries || from candidate countries || from third countries || within the meaning of Article 21(2)(b) of the Financial Regulation 
   || […][XX.YY.YY.YY]   ||   || YES/ NO || YES/ NO || YES/ NO || YES/NO 
3.2.        Estimated impact on
expenditure 
[This section
should be filled in using the spread sheet on budget data of an administrative nature (second document in annex to this
financial statement) and uploaded to CISNET for interservice consultation
purposes.]
3.2.1.     Summary of estimated impact
on expenditure 
The EUSF is not budgeted. Actual spending will
depend on applications for aid submitted by eligible States following the
(unpredictable) occurrence of natural disasters and the maximum amount of
annual allocation available to the Fund as decided in the IIA. 
EUR million (to three decimal places)
 Heading of multiannual financial framework || Number || […][Heading……………...……………………………………………………………….] 
 DG: <…….> ||   ||   || Year N[27]   || Year N+1 || Year N+2 || Year N+3 || Enter as many years as necessary to show the duration of the impact (see point 1.6) || TOTAL 
  Operational appropriations ||   ||   ||   ||   ||   ||   ||   ||   
 Number of budget line || Commitments || (1) ||   ||   ||   ||   ||   ||   ||   ||   
 Payments || (2) ||   ||   ||   ||   ||   ||   ||   ||   
 Number of budget line || Commitments || (1a) ||   ||   ||   ||   ||   ||   ||   ||   
 Payments || (2a) ||   ||   ||   ||   ||   ||   ||   ||   
 Appropriations of an administrative nature financed from the envelope of specific programmes[28]   ||   ||   ||   ||   ||   ||   ||   ||   
 Number of budget line ||   || (3) ||   ||   ||   ||   ||   ||   ||   ||   
 TOTAL appropriations for DG <….> || Commitments || =1+1a +3 ||   ||   ||   ||   ||   ||   ||   ||   
 Payments || =2+2a +3 ||   ||   ||   ||   ||   ||   ||   ||   
  TOTAL operational appropriations || Commitments || (4) ||   ||   ||   ||   ||   ||   ||   ||   
 Payments || (5) ||   ||   ||   ||   ||   ||   ||   ||   
  TOTAL appropriations of an administrative nature financed from the envelope for specific programmes || (6) ||   ||   ||   ||   ||   ||   ||   ||   
 TOTAL appropriations for HEADING <….> of the multiannual financial framework || Commitments || =4+ 6 ||   ||   ||   ||   ||   ||   ||   ||   
 Payments || =5+ 6 ||   ||   ||   ||   ||   ||   ||   ||   
If more than one heading is affected by the proposal /
initiative:
  TOTAL operational appropriations || Commitments || (4) ||   ||   ||   ||   ||   ||   ||   ||   
 Payments || (5) ||   ||   ||   ||   ||   ||   ||   ||   
  TOTAL appropriations of an administrative nature financed from the envelope for specific programmes || (6) ||   ||   ||   ||   ||   ||   ||   ||   
 TOTAL appropriations under HEADINGS 1 to 4 of the multiannual financial framework (Reference amount) || Commitments || =4+ 6 ||   ||   ||   ||   ||   ||   ||   ||   
 Payments || =5+ 6 ||   ||   ||   ||   ||   ||   ||   ||   
 Heading of multiannual financial framework || 5 || " Administrative expenditure " 
EUR million (to three decimal places)
   ||   ||   || 2014 || 2015 || 2016 || 2017 || 2018 || 2019 || 2020 || TOTAL 
 DG: REGIO || 
  Human resources || 0.262 || 0.262 || 0.262 || 0.262 || 0.262 || 0.262 || 0.262 || 1.834 
  Other administrative expenditure ||   ||   ||   ||   ||   ||   ||   ||   
 TOTAL DG <…….> || Appropriations ||   ||   ||   ||   ||   ||   ||   ||   
 TOTAL appropriations for HEADING 5 of the multiannual financial framework || (Total commitments = Total payments) || 0.262 || 0.262 || 0.262 || 0.262 || 0.262 || 0.262 || 0.262 || 1.834 
EUR million (to three decimal places)
   ||   ||   || 2014 || 2015 || 2016 || 2017 || 2018 || 2019 || 2020 || TOTAL 
 TOTAL appropriations under HEADINGS 1 to 5 of the multiannual financial framework || Commitments || 0.262 || 0.262 || 0.262 || 0.262 || 0.262 || 0.262 || 0.262 || 1.834 
 Payments || 0.262 || 0.262 || 0.262 || 0.262 || 0.262 || 0.262 || 0.262 || 1.834 
3.2.2.     Estimated impact on
operational appropriations 
–      ¨  The
proposal/initiative does not require the use of operational appropriations 
–      ¨  The
proposal/initiative requires the use of operational appropriations, as
explained below:
Commitment appropriations in EUR million (to three
decimal places)
 Indicate objectives and outputs   ò ||   ||   || Year N || Year N+1 || Year N+2 || Year N+3 || Enter as many years as necessary to show the duration of the impact (see point 1.6) || TOTAL 
 OUTPUTS 
 Type[29]   || Average cost || No || Cost || No || Cost || No || Cost || No || Cost || No || Cost || No || Cost || No || Cost || No total || Total cost 
 SPECIFIC OBJECTIVE No 1[30] ...   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   
 - Output ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   
 - Output ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   
 - Output ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   
 Subtotal for specific objective No 1 ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   
 SPECIFIC OBJECTIVE NO 2 ... ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   
 - Output ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   
 Subtotal for specific objective No 2 ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   
 TOTAL COST ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   
3.2.3.     Estimated impact on appropriations
of an administrative nature
3.2.3.1.  Summary 
–     
¨  The proposal/initiative does not require the use of appropriations
of an administrative nature 
–     
¨  The proposal/initiative requires the use of appropriations of an
administrative nature, as explained below:
EUR million (to
three decimal places)
   || 2014 || 2015 || 2016 || 2017 || 2018 || 2019 || 2020 || TOTAL 
 HEADING 5 of the multiannual financial framework ||   ||   ||   ||   ||   ||   ||   ||   
 Human resources || 0.262 || 0.262 || 0.262 || 0.262 || 0.262 || 0.262 || 0.262 || 1.834 
 Other administrative expenditure ||   ||   ||   ||   ||   ||   ||   ||   
 Subtotal HEADING 5 of the multiannual financial framework ||   ||   ||   ||   ||   ||   ||   ||   
 Outside HEADING 5[31] of the multiannual financial framework   ||   ||   ||   ||   ||   ||   ||   ||   
 Human resources ||   ||   ||   ||   ||   ||   ||   ||   
 Other expenditure of an administrative nature ||   ||   ||   ||   ||   ||   ||   ||   
 Subtotal outside HEADING 5 of the multiannual financial framework ||   ||   ||   ||   ||   ||   ||   ||   
 TOTAL ||   ||   ||   ||   ||   ||   ||   ||   
The human resources
appropriations required will be met by appropriations from the DG that are
already assigned to management of the action and/or have been redeployed within
the DG, together if necessary with any additional allocation which may be
granted to the managing DG under the annual allocation procedure and in the
light of budgetary constraints.
3.2.3.2.  Estimated requirements of
human resources 
–     
¨  The proposal/initiative does not require the use of human
resources. 
–     
¨  The proposal/initiative requires the use of human resources, as
explained below:
Estimate to be expressed in full time
equivalent units
   || 2014 || 2015 || 2016 || 2017 || 2018 || 2019 || 2020 
  Establishment plan posts (officials and temporary staff) ||   ||   
 XX 01 01 01 (Headquarters and Commission’s Representation Offices) || 2 || 2 || 2 || 2 || 2 || 2 || 2 
 XX 01 01 02 (Delegations) || 0 ||   ||   ||   ||   ||   ||   
 XX 01 05 01 (Indirect research) || 0 ||   ||   ||   ||   ||   ||   
 10 01 05 01 (Direct research) || 0 ||   ||   ||   ||   ||   ||   
  External staff (in Full Time Equivalent unit: FTE)[32]   
 XX 01 02 01 (CA, SNE, INT from the "global envelope") || 0 ||   ||   ||   ||   ||   ||   
 XX 01 02 02 (CA, LA, SNE, INT and JED in the delegations) || 0 ||   ||   ||   ||   ||   ||   
 XX 01 04 yy[33]   || - at Headquarters   || 0 ||   ||   ||   ||   ||   ||   
 - Delegations || 0 ||   ||   ||   ||   ||   ||   
 XX 01 05 02 (CA, SNE, INT - Indirect research) || 0 ||   ||   ||   ||   ||   ||   
 10 01 05 02 (CA, INT, SNE - Direct research) || 0 ||   ||   ||   ||   ||   ||   
 Other budget lines (specify) || 0 ||   ||   ||   ||   ||   ||   
 TOTAL || 2 || 2 || 2 || 2 || 2 || 2 || 2 
XX is the policy
area or budget title concerned.
The human resources
required will be met by staff from the DG who are already assigned to
management of the action and/or have been redeployed within the DG, together if
necessary with any additional allocation which may be granted to the managing
DG under the annual allocation procedure and in the light of budgetary
constraints. The work is currently carried out by 1 AD and 1 AST official.
Description of
tasks to be carried out:
 Officials and temporary staff || Analysis of requests for contributions from the Fund, preparation of grant decisions, follow-up of payments, evaluation of reports, etc. 
 External staff || n/a 
3.2.4.     Compatibility with the
current multiannual financial framework 
–     
¨  Proposal/initiative is compatible the current multiannual
financial framework.
–     
¨  Proposal/initiative will entail reprogramming of the relevant
heading in the multiannual financial framework.
Explain what reprogramming is required,
specifying the budget lines concerned and the corresponding amounts.
–     
¨  Proposal/initiative requires application of the flexibility
instrument or revision of the multiannual financial framework[34].
Explain what is required, specifying the
headings and budget lines concerned and the corresponding amounts.
3.2.5.     Third-party contributions 
–     
The proposal/initiative does not provide for
co-financing by third parties. 
–     
The proposal/initiative provides for the
co-financing estimated below:
Appropriations in EUR million (to 3 decimal places)
   || Year N || Year N+1 || Year N+2 || Year N+3 || Enter as many years as necessary to show the duration of the impact (see point 1.6) || Total 
 Specify the co-financing body ||   ||   ||   ||   ||   ||   ||   ||   
 TOTAL appropriations co-financed ||   ||   ||   ||   ||   ||   ||   ||   
3.3.        Estimated impact on
revenue 
Cannot be estimated in advance
–     
¨  Proposal/initiative has no financial impact on revenue.
–     
¨  Proposal/initiative has the following financial impact:
–     
¨  on own resources 
–     
¨  on miscellaneous revenue 
EUR million (to three decimal places)
 Budget revenue line: || Appropriations available for the current financial year || Impact of the proposal/initiative[35]   
 Year 2014 || Year 2015 || Year 2016 || Year 2017 || Year 2018 || Year 2019 || Year 2020 
 Article 6150 and 6500 ||   || 50 || 50 || 50 || 50 || 50 || 50 || 50 
   ||   ||   ||   ||   ||   ||   ||   ||   
For miscellaneous
‘assigned’ revenue, specify the budget expenditure line(s) affected.
Specify the method for
calculating the impact on revenue.
Advances
should be financed from recoveries from ERDF and Cohesion Fund to a limit of
EUR 50 million. The Commission will propose an amendment of
Commission proposed Regulation COM(2011) 615 final.
[1]               Council Regulation (EC) No 2012/2002
[2]               COM(2005)108
[3]               Report on the proposal for a Regulation of the
European Parliament and of the Council on establishing the European Union
Solidarity Fund, A6-0123/2006 of 31.3.2006
[4]               COM(2011)613
[5]               COM(2009)193
[6]                      Consolidated version of the Treaty on the Functioning of the
European Union, OJ C83/47 of 30.3.2010
[7]               Opinion of the European Economic and Social Committee
on the Communication from the Commission to the European Parliament, the
Council, the European Economic and Social Committee and the Committee of the
Regions on the future of the European Union Solidarity Fund, ECO/319 of 28 March
2012
[8]               Report on the European Union Solidarity Fund,
implementation and application, A7-0398/2012 of 20.12.2012
[9]               Amended proposal for a Regulation of the European
Parliament and of the Council laying down common provisions on the European
Regional Development Fund, the European Social Fund, the Cohesion Fund, the
European Agricultural Fund for Rural Development and the European Maritime and
Fisheries Fund covered by the Common Strategic Framework and laying down
general provisions on the European Regional Development Fund, the European
Social Fund and the Cohesion Fund and repealing Council Regulation (EC) No
1083/2006, COM(2013) 246 final
[10]             European Court of Auditors, Special Report No 24 2012. The
European Union Solidarity Fund’s response to the 2009 Abruzzi Earthquake: The
relevance and cost of operations.
[11]             OJ C […]
[12]             OJ C […]
[13]             OJ L 311, 14.11.2002, p. 3.
[14]             OJ L 298, 26.10.2012, p.1.
[15]             …..
[16]             OJ L 136, 31.5.1999, p. 1.
[17]             OJ L 292, 15.11.1996, p. 2.
[18]             ABM: activity-based management – ABB: activity-based
budgeting.
[19]             As referred to in Article 54(2)(a) or (b) of the
Financial Regulation.
[20]                    Consolidated version of the Treaty on the Functioning of the
European Union, OJ C83/47 of 30.3.2010
[21]             Details of management modes and references to the
Financial Regulation may be found on the BudgWeb site: http://www.cc.cec/budg/man/budgmanag/budgmanag_en.html
[22]             As referred to in Article 185 of the Financial
Regulation.
[23]             European
Court of Auditors, Special Report No 24 2012, The European Union Solidarity
Fund’s response to the 2009 Abruzzi earthquake: The relevance and cost of
operations.
[24]             Diff. = Differentiated appropriations / Non-Diff. =
Non-differentiated appropriations.
[25]             EFTA: European Free Trade Association. 
[26]             Candidate countries and, where applicable, potential
candidate countries from the Western Balkans.
[27]             Year N is the year in which implementation of the
proposal/initiative starts.
[28]             Technical and/or administrative assistance and expenditure
in support of the implementation of EU programmes and/or actions (former
"BA" lines), indirect research, direct research.
[29]             Outputs are products and services to be supplied (e.g.:
number of student exchanges financed, number of km of roads built, etc.).
[30]             As described in point 1.4.2. ‘Specific objective(s)…’ 
[31]             Technical and/or administrative assistance and
expenditure in support of the implementation of EU programmes and/or actions
(former "BA" lines), indirect research, direct research.
[32]             CA= Contract Staff; LA = Local Staff; SNE= Seconded
National Expert; INT = agency staff; JED= Junior Experts in Delegations). 
[33]             Sub-ceiling for external staff covered by operational
appropriations (former "BA" lines).
[34]             See points 19 and 24 of the Interinstitutional
Agreement (for the period 2007-2013).
[35]             As regards traditional own resources (customs duties,
sugar levies), the amounts indicated must be net amounts, i.e. gross amounts
after deduction of 25% for collection costs.