Proposal for a DECISION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on the mobilisation of the European Union Solidarity Fund to provide assistance to Greece following the earthquake that affected the Ionian Islands in November 2015
Date: 2016-07-13
Institutions: Directorate-General for Budget, European Commission
Subjects: Greece, Ionian Islands, aid to disaster victims, budgetary resources, commitment of expenditure, earthquake, emergency aid, financial aid, fund (EU), general budget (EU)

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   EUROPEAN COMMISSION  Brussels, 13.7.2016  COM(2016) 462 final   Proposal for a DECISION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on the mobilisation of the European Union Solidarity Fund to provide assistance to Greece following the earthquake that affected the Ionian Islands in November 2015  
 
EXPLANATORY MEMORANDUM 

1. 

CONTEXT OF THE PROPOSAL 

This decision covers the mobilisation of the European Union Solidarity Fund (the "Fund") for 
an amount  of EUR 1 651 834 following an earthquake in Greece. This  mobilisation will be 
financed in full through the partial use of the EUR 50 000 000 in commitment and payment 
appropriations already entered into the 2016 budget, and as such an amending budget is not 
required.  

2. 

INFORMATION AND CONDITIONS 

On  5  February  2016  the  Commission  received  an  application  for  the  Fund  for  financial 
assistance relating to a disaster in Greece (earthquake affecting the Ionian Islands region, in 
particular the islands of Lefkada and Kefalonia) which had occurred on 17 November 2015. 
The  Commission  has  carried  out  a  thorough  examination  of  this  application  in  accordance 
with Council Regulation (EC) No 2012/2002 of 11 November 2002 establishing the European 
Union  Solidarity  Fund1  (hereafter  "the  Regulation"),  in  particular  with  Articles  2,  3  and  4 
thereof. The most important elements of the assessments are set out below. 

(1) 

Greece  submitted  its  application  for  a  financial  contribution  from  the  Fund  on  5 
February 2016, within the deadline of 12 weeks after the first damage was recorded on 
17  November  2015  (Lefkada  island).  The  application  was  submitted  as  'regional 
disaster' under article 2(3) of the Regulation. Following a query from the Commission 
updated information was presented on 9 March 2016. 

(2)  When submitting its application Greece requested the payment of an advance on the 
anticipated  contributions  from  the  Fund.  Following  a  preliminary  assessment  of  the 
applications, the Commission concluded that the conditions laid down in Article 4a of 
the Regulation were met. 

(3) 

(4) 

(5) 

(6) 

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2 

Commission  decision  C(2016)  1772  on  18  March  2016  awarded  an  advance 
amounting  to  EUR 164  798  which  represented  10 %  of  the  anticipated  financial 
contribution from the Fund.  

The Greek authorities initially estimated the total direct damage at EUR 65 919 000. 
On 9 March 2016 the Greek authorities presented an update of the application raising 
total direct damage to EUR 66 073 345. The updated damage amount represents 2,1% 
of  the  regional  GDP  of  the  concerned  NUTS  2  region  Ionia  Islands  (EUR  3  137 
million based on 2014 Eurostat figures2 for EL62) and thus exceeds the threshold of 
1,5% of regional GDP laid down in the Regulation to qualify as a regional disaster. 

Total  direct  damage  is  the  basis  for  determining  the  amount  of  the  financial 
contribution from the Fund. The financial contribution may only be used for essential 
emergency and recovery operations as defined in Article 3 of the Regulation. 

As  regards  the  impact  and  consequences  of  the  disaster,  a  series  of  catastrophic 
earthquakes  reaching  magnitude  6.1  on  the  Richter  scale  struck  Lefkada  on  the 

Council  Regulation  (EC)  No  2012/2002  of  11  November  2002  establishing  the  European  Union 
Solidarity Fund, OJ L 311 of 14.11.2002, p.3  
This is based on latest Eurostat data received in May 2016. At the moment the application was received 
the  threshold  was  calculated  based  on  provisional  (higher)  data  and  as  a  result  the  provisionally 
calculated threshold of EUR 48,7 million is decreased to EUR 47,1 million. In both cases the threshold 
is met and there is no impact on the amount of aid proposed. 

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morning  of  17  November  2015.  Damage  was  also  recorded  in  the  northern  parts  of 
Ithaki  and  Kefalonia.  Several  aftershocks  followed  the  event.  Two  people  lost  their 
lives  and  eight  people  were  wounded.  According  to  expert  seismologists  the 
earthquake  shifted  the  island  of  Lefkada  36  cm  to  the  south.  The  Greek  Civil 
protection operations centre was activated immediately and temporary housing, shelter 
and  food  were  provided  to  the  affected  population.  The  earthquake  damaged  120 
housing units, of which 20 were considered unsuitable for living. Moreover, extensive 
damage  to  the  provincial  and  municipal  infrastructure  networks,  private  and  public 
buildings  (including  the  local  hospital)  and  other  infrastructure  (ports,  biological 
networks) but also to cultural sites (mainly churches) was reported. Landslides buried 
and  destructed  some  of  the  touristically  most  important  beaches  in  the  west  of  the 
island. 

The  cost  of  essential  emergency  operations  eligible  under  Article  3(2)  of  the 
Regulation has been estimated by the Greek authorities at EUR 52,374 million and has 
been  broken  down  by  type  of  operation.  The  largest  share  of  the  cost  concerns  the 
transport sector of over EUR 38 million. The second largest share of cost concerns the 
protection of cultural heritage amounting to over EUR 7 million.  

The  affected  region  is  a  "less  developed  region"  under  the  European  Structural  and 
Investment  Funds  (2014-2020).  The  Greek  authorities  have  not  signalled  to  the 
Commission  their  intention  to  reallocate  funding  from  the  ESI  Fund  programme 
towards recovery measures. 

As  regards  the  implementation  of  Union  legislation  on  disaster  risk  prevention  and 
management there is currently no infringement procedure on-going. Greece, one of the 
seismically most active countries in Europe, has sought to create a natural disaster risk 
prevention  and  management  framework.  The  first  Greek  Earthquake  Regulation 
(EAK-2000) entered into force in 1959 and has undergone several modifications. The 
Regulation  was  supplemented  in  2003  with  a  new  map  of  seismic  risk  zones.  The 
Earthquake planning and protection organisation (OASP) is a legal entity under public 
law  and  is  supervised  by  the  Ministry  of  Infrastructure,  Transport  and  Networks, 
aiming to minimise the devastating effects of earthquakes.  

(7) 

(8) 

(9) 

(10)  At  the  date  of  submitting  the  application  Greece  was  not  subject  to  infringement 
proceedings concerning Union legislation relating to the nature of the disaster. 

(11) 

The Greek authorities confirmed that there is no insurance coverage of eligible costs. 

3. 

BUDGETARY IMPLICATIONS 

Council Regulation (EU, EURATOM)  No 1311/2013  of 2 December 2013 laying down the 
multiannual financial framework for the years 2014-20203, and in particular Article 10 thereof 
allows  for  the  mobilisation  of  the  European  Union  Solidarity  Fund  (the  "Fund"),  within  an 
annual ceiling of EUR 500 000 000 (2011 prices), over and above the relevant headings of the 
financial  framework.  The  conditions  of  eligibility  to  the  Fund  are  detailed  in  the  Council 
Regulation (EC) No 2012/2002 as amended by Regulation (EU) No 661/2014 of the European 
Parliament  and  of  the  Council  of  15  May  2014  establishing  the  European  Union  Solidarity 
Fund. Point 11 of the Interinstitutional Agreement of 2 December 2013 between the European 
Parliament,  the  Council  and  the  Commission  on  budgetary  discipline,  on  cooperation  on 

3 

OJ L 347, 20.12.2013, p. 884. 

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budgetary  matters  and  on  sound  financial  management4  (IIA)  set  on  the  modalities  for  the 
mobilisation of the Fund. 

As solidarity was the central justification for the creation of the Fund, the Commission takes 
the view that aid from the Fund should be progressive. That means that, according to previous 
practice,  the  portion  of  the  damage  exceeding  the  “major  disaster”  threshold  for  mobilising 
the Fund (i.e. 0,6% of GNI or EUR 3 billion in 2011 prices, whichever is the lower amount) 
should give rise to higher aid intensity than damage up to the threshold. The rate applied in 
the past for defining the allocations for major disasters is 2,5% of total direct damage under 
the  threshold  and  6%  for  the  part  of  the  damage  above.  For  regional disasters  and  disasters 
accepted under the “neighbouring country” provision the rate is 2,5%. 

The  contribution  may  not  exceed  the  estimated  total  cost  of  eligible  operations.  The 
methodology for calculating Solidarity Fund aid was set out in the 2002-2003 Annual Report 
on the Solidarity Fund and accepted by the Council and the European Parliament. 

On the basis of the application from Greece, the calculation of the aid from the Fund, based 
on the estimate of total direct damage caused is as follows: 

Disaster 

GREECE  

TOTAL 

Direct 
damage 
(million €) 

2,5% of direct 
damage up to 
threshold 
(€) 

6% of direct 
damage 
above 
threshold 

Total amount of aid 
proposed 
(€) 

66,073 

1 651 834 

- 

1 651 834 

1 651 834 

An amount of EUR 50 000 000 was mobilised at the time of the adoption of the Budget 2016 
for the payment of advances and the corresponding commitment and payment appropriations 
were  entered  into  the  budget.  In  the  light  of  the  examination  of  this  application5  and 
considering the maximum possible grant from the Fund, the Commission proposes to mobilise 
the Fund for EUR 1 651 834 from the EUR 50 000 000 specifically mobilised for advances on 
the general budget of the European Union for the financial year 2016. 

As an amount of EUR 164 798 was already paid for the 10 % advances in line with Article 
4a(2) of the Regulation, the remaining balance to be paid is EUR 1 487 036. 

After the payment of the above-mentioned advances, the available balance for the payment of 
advances in the budget is EUR 49 835 202. In line with point 11 of the IIA which provides for 
the possibility to  reallocate appropriations, the Commission  is  proposing to  draw from such 
available balance the EUR 1 487 036 needed for Greece. After the payment of the remaining 
balance, an amount of EUR 48 348 166 remains available for further advances in 2016 in case 
of need. Based on the information currently available, this is assessed to be sufficient in the 
event of new applications received during the remaining part of the year.  

In the event of disagreement, a trilogue procedure will be initiated in accordance with Point 
11 of the IIA6. 

4 
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OJ C 373, 20.12.2013, p. 1. 
Communication to the Commission C(2016) 3872. 
OJ C 373, 20.12.2013, p. 1. 

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Proposal for a 

DECISION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL 

on the mobilisation of the European Union Solidarity Fund to provide assistance to 
Greece following the earthquake that affected the Ionian Islands in November 2015 

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION, 

Having regard to the Treaty on the Functioning of the European Union, 

Having regard to Council Regulation (EC) No 2012/2002 of 11 November 2002 establishing 
the European Union Solidarity Fund7, and in particular Article 4(3) thereof, 

Having regard to the Interinstitutional Agreement of 2 December 2013 between the European 
Parliament,  the  Council  and  the  Commission  on  budgetary  discipline,  on  cooperation  in 
budgetary matters  and on sound financial management8, and in particular point 11 thereof, 

Having regard to the proposal from the European Commission, 

Whereas: 

(1) 

(2) 

(3) 

(4) 

(5) 

(6) 

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8 
9 

10 

The European Union Solidarity Fund ('the Fund') aims to enable the Union to respond 
in  a  rapid,  efficient  and  flexible  manner  to  emergency  situations  in  order  to  show 
solidarity with the population of regions struck by natural disasters.  

The  Fund  is  not  to  exceed  a  maximum  annual  amount  of  EUR 500 000  000  (2011 
prices),  as  laid  down  in  Article  10  of  Council  Regulation  (EU,  Euratom)  No 
1311/20139. 

On 5 February 2016, Greece submitted an application to mobilise the Fund, following 
an earthquake that affected the Ionian Islands in November 2015.  

The application of Greece meets the conditions for providing a financial contribution 
from the Fund, as laid down in Article 4 of Regulation (EC) No 2012/2002. 

The Fund should therefore be mobilised in order to provide a financial contribution to 
Greece.  
By  Decision  (EU)  2016/252  of  the  European  Parliament  and  of  the  Council10  the 
European  Union  Solidarity  Fund  was  mobilised  to  provide  the  sum  of  EUR  50  000 
000 in commitment and payment appropriations for the payment of advances for the 
financial  year  2016.  Those  appropriations  have  only  been  used  to  a  very  limited 
extent. Consequently, there is scope for financing the full amount for this mobilisation 
through the reallocation of appropriations available for the payment of advances in the 
general budget of the Union for the financial year 2016. 

OJ L 311, 14.11.2002, p. 3. 
OJ C 373, 20.12.2013, p.1. 
Council  Regulation  (EU,  Euratom)  No  1311/2013  of  2  December  2013  laying  down  the  multiannual 
financial framework for the years 2014-2020 (OJ L 347, 20.12.2013, p. 884). 
Decision (EU) 2016/252 of the European Parliament and of the Council of 25 November 2015 on the 
mobilisation of the European Union Solidarity Fund for the payment of advances (OJ L 47, 24.2.2016, 
p. 5). 

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(7) 

In order to minimise the time taken to mobilise the Fund, this Decision should apply 
from the date of its adoption, 

HAVE ADOPTED THIS DECISION: 

Article 1 

For  the  general  budget  of  the  Union  for  the  financial  year  2016,  the  European  Union 
Solidarity  Fund  shall  be  mobilised  to  provide  the  amount  of  EUR 1  651  834 to  Greece,  in 
commitment and payment appropriations.  

The  full  amount  of  the  mobilisation  referred  to  in  the  first  paragraph  shall  be  financed  by 
appropriations  mobilised  for  the  payment  of  advances  in  the  Union  budget  for  the  financial 
year 2016, and the amount available for advances shall be reduced accordingly.  

This Decision shall enter into force on the day of its publication in the Official Journal of the 
European Union. 

Article 2 

It shall apply from … [the date of its adoption]. 

Done at Brussels, 

For the European Parliament 
The President 

For the Council 
The President 

 Date to be inserted by the Parliament before the publication in OJ. 

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