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 Latvia
Date: 2018-09-20
Institutions: Directorate-General for Budget, European Commission
Subjects: European Union Solidarity Fund, Latgale, Latvia, aid to disaster victims, commitment of expenditure, emergency aid, flood, general budget (EU), payment appropriation

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   EUROPEAN COMMISSION  Brussels, 20.9.2018 COM(2018) 658 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 Latvia  
 
 
EXPLANATORY MEMORANDUM 

1. 

CONTEXT OF THE PROPOSAL 

This  decision  covers  the  mobilisation  of  the  European  Union  Solidarity  Fund  (EUSF)  in 
accordance  with  Council  Regulation  (EC)  No  2012/2002  of  11 November 20021  (hereafter 
refered  to  as  the  'Regulation')  for  an  amount  of  EUR 17 730 519  to  provide  assistance  to 
Latvia  further  to  the  flooding  disaster  that  took  place  in  2017.  This  mobilisation  will  be 
financed in full through the partial use of the remaining EUR 47 479 154 in commitment and 
payment  appropriations  already  entered  into  the  2018  budget  for  covering  advances.  An 
amending budget is therefore not required.  

2. 

INFORMATION AND CONDITIONS 

During  the  summer  and  autumn  of  2017,  Latvia  was  affected  by  a  long-lasting  period  of 
intense  rainfalls  leading  to  the  saturation  of  soils  and  subsequent  flooding  throughout  the 
country,  particularly  in  the  Latgale  region  and  surrounding  territories.  As  a  consequence, 
crops  were  destroyed  and  widespread  damage  was  caused  to  water  courses,  the  drainage 
system, connected water treatment installations as well as road and railway infrastructure. 

(1) 

(2) 

(3) 

(4) 

(5) 

Latvia  applied  for  a  contribution  from  the  EUSF  on  14 November 2017,  within  the 
deadline  of  12  weeks  after  the  first  damage  was  recorded  on  24 August 2017.  The 
application  was  submitted  as  a  ‘major  natural  disaster'  under  Article  2(2)  of  the 
Regulation. On 27 April 2018, in response to a request from the Commission, Latvia 
submitted additional information necessary to complete the assessment of this case. 

The disaster is of natural origin and therefore falls within the field of application of 
the EUSF. 

the 

total  direct  damage  caused  by 

Latvia  estimated 
flooding  at 
EUR 380,5 million. This amount exceeds the 'major disaster threshold' for mobilising 
the  EUSF  applicable  to  Latvia  in  2017  of  EUR 145 740 000  (i.e.  0,6%  of  Latvia’s 
Gross  National  Income  based  on  2015  data).  As  the  estimated  total  direct  damage 
exceeds that threshold, the disaster qualifies as a ‘major natural disaster’ as defined 
by the Regulation. The application from Latvia is therefore eligible for a contribution 
from the EUSF. 

the 

Latvia did not request the payment of an advance. 

The  Latvian  application  gives  a  detailed  description  of  the  meteorological  situation 
leading  to  the  disaster  and  of  its  effects.  The  continuous  rainfall  and  floods  during 
August,  September  and  October  2017  caused  considerable  damage  in  agriculture 
resulting in the loss of crops and the widespread clogging of the agricultural drainage 
system.  Moreover,  state  and  local  government  infrastructure  was  damaged,  in 
particular  in  the  fields  of  water  (water  courses,  drainage  systems,  hydrological 
installations,  embankments  and  connected  protective  infrastructure)  and  transport 
infrastructure (major and local roads, railways). In total, 184 state motor roads were 
damaged,  the  railway  traffic  had  to  be  suspended  temporarily.  On  29 August 2017 

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Council  Regulation  (EC)  No  2012/2002  of  11 November  2002  establishing  the  European  Union 
Solidarity  Fund  (OJ  L  311,  14.11.2002,  p.  3),  as  amended  by  Regulation  (EU)  No  661/2014  of  the 
European Parliament and of the Council of 15 May 2014 (OJ L 189, 27.6.2014, p. 143). 

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(6) 

(7) 

(8) 

the  state  of  emergency  was  declared.  State  and  local  government  institutions  and 
enterprises,  providing  services  to  the  population,  could  not  function  properly.  A 
number of schools and other local government buildings were flooded and had to be 
closed. Water courses were washed out and their beds filled with deposits, affecting 
over 28 000 km of (underground) drainage systems, some 4 500 km of open drains 
and  ditches  and  some  1 700  water  courses  and  hydrological  constructions.  The 
flooding  of  waste  water  treatment  installations  led  to  the  pollution  of  water  and 
presented a danger to the environment. 

Latvia  estimated  the  cost  of  emergency  and  recovery  operations  eligible  under 
Article 3(2) of the Regulation at EUR 36,2 million and presented it broken down by 
type of operation. By far the largest share of eligible costs (almost EUR 32 million) 
concerns the public drainage system and related infrastructure. The contribution from 
the EUSF may however not be used for repairs going beyond the state of these assets 
before the disaster. 

The Latvian authorities confirmed that there is no insurance coverage of eligible cost. 

The  affected  region  is  a  'less  developed  region'  under  the  European  Structural  and 
Investment  Funds  (2014-2020).  The  Latvian  authorities  did  not  signal  to  the 
Commission  their  intention  to  reallocate  funding  from  the  ESI  Funds  programmes 
towards recovery measures. However, following a request from Latvia for support to 
farmers  presented  to  the  Commission  in  November  2017,  the  Commission  adopted 
Implementing Regulation (EU) 2018/108 on "an emergency measure in the form of 
aid  to  farmers  due  to  the  floods  and  heavy  rainfalls  in  certain  areas  of  Lithuania, 
Latvia,  Estonia  and  Finland".  The  maximum  amount  provided  to  Latvia  is 
EUR 3,5 million. 

(9) 

Latvia did not activate the Union Civil Protection Mechanism.  

(10) 

As  regards  the  implementation  of  Union  legislation  on  disaster  risk  prevention  and 
management, there is currently no infringement procedure on-going.  

2.5 

Conclusion 

For the reasons set out above, the disaster referred to in the application submitted by Latvia 
meets the conditions set out in the Regulation for mobilising the EUSF. 

3. 

FINANCING FROM THE EUSF ALLOCATIONS 2018 

Council  Regulation  (EU,  EURATOM)  No  1311/2013  of  2 December 2013  laying  down  the 
multiannual financial framework for the years 2014-20202 (hereafter "the MFF regulation"), 
and in particular Article 10 thereof allows for the mobilisation of the EUSF, within an annual 
ceiling  of  EUR 500 000 000  (2011  prices).  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  budgetary  matters  and  on  sound  financial 
management3 (IIA) lays down the modalities for the mobilisation of the EUSF. 

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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). 
OJ C 373, 20.12.2013, p. 1. 

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As solidarity was the central justification for the creation of the EUSF, the Commission takes 
the view that aid should be progressive. That means that, according to previous practice, the 
portion  of  the  damage  exceeding  the  “major  natural  disaster”  threshold  for  mobilising  the 
EUSF  (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 the aid was set out in the 2002-2003 Annual Report on the EUSF 
and accepted by the Council and the European Parliament. 

On the basis of the application from Latvia, the calculation of the financial contribution from 
the EUSF, based on the estimate of total direct damages caused is as follows: 

Member 
States 

LATVIA 

Qualification 
of disaster 

Total direct 
damage 

Major disaster 
threshold 

2,5% of direct 
damage up to 
threshold  

(million EUR) 

(million EUR) 

(EUR) 

Major 
(Art. 2(2)) 

TOTAL 

380,524 

145,740 

3 643 500 

6% of direct 
damage 
above 
threshold 

(EUR) 
14 087 019 

Total amount 
of aid proposed 

Advances 
paid 

(EUR) 

(EUR) 

17 730 519 

17 730 519 

0 

0 

In  accordance  with  Article  10(1)  of  the  MFF  regulation,  the  total  amount  available  for  the 
mobilisation of the EUSF at the beginning of 2018 was EUR 421 142 057, being the sum of 
the  remaining  2018  allocation  of  EUR 280 371 754  (i.e.  EUR 574 342 834  minus 
EUR 293 971 080  already  mobilised  in  20174),  plus  the  remaining  2017  allocation  of 
EUR 140 770 303 that remained unspent and was carried over to 2018. 

The amount that may be  mobilised at this stage of the year 2018 is EUR 139 397 191. This 
corresponds to the total amount available for the mobilisation of the EUSF at the beginning of 
2018 (EUR 421 142 057), minus the retained amount of EUR 143 585 709 in order to respect 
the  obligation  of  keeping  aside  25 %  of  the  2018  annual  allocation  until  1  October  2018  as 
stipulated  by  Article  10(1)  of  the  MFF  regulation,  minus  EUR 104 166 951  mobilised  for 
Greece,  Spain,  France  and  Portugal5  and  minus  EUR 33 992 206  mobilised  for  Bulgaria, 
Greece, Lithuania and Poland6 earlier this year. 

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Decision (EU) 2017/1599 of the European Parliament and of the Council of 13 September 2017 on the 
mobilisation of the European Union Solidarity Fund to provide assistance to Italy (OJ L 245, 23.9.2017) 
and the accompanying Amending Budget N°4/2017 (OJ L 330, 13.12.2017). 
Decision  (EU)  2018/846  of  the  European  Parliament  and  of  the  Council  of  30  May  2018  on  the 
mobilisation of the European Union Solidarity Fund to provide assistance to Greece, Spain, France and 
Portugal (OJ L 144, 8.6.2018, p. 3–4) and the accompanying Amending Budget N°1/2018 (OJ L 191, 
27.7.2018, p. 1–22). 
Decision of the European Parliament and of the Council of 11 September 2018 on the mobilisation of 
the  European  Union  Solidarity  Fund  to  provide  assistance  to  Bulgaria,  Greece,  Lithuania  and  Poland 
(OJ  L  XX,  XX.XX.XXX)  and  the  accompanying  Amending  Budget  N°4/2018  (OJ  L  XX, 
XX.XX.XXX). 

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EUSF financing summary table 

2017 allocation carried forward to 2018 

2018 allocation 

2018 allocation frontloaded in 2017 in accordance with Article 10(2) of the MFF regulation 

Total available at the beginning of 2018 

Minus already mobilised in 2018 for Greece, Spain, France and Portugal 

Minus already mobilised in 2018 for Bulgaria, Greece, Lithuania and Poland 

Minus 25% of the 2018 allocation retained 

Maximum amount currently available (2017+2018 allocations) 

Total amount of aid proposed to be mobilised for Latvia 

Remaining availabilities until 1 October 2018 

Amount 

EUR 

140 770 303 

574 342 834 

-293 971 080 
---------------- 

421 142 057 

-104 166 951 

- 33 992 206 

-143 585 709 
---------------- 

139 397 191 

- 17 730 519 

121 666 672 

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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 
Latvia 

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) 

(7) 

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8 
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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 14 November 2017, Latvia submitted an application to mobilise the Fund, further 
to a long-lasting period of intense rainfalls during summer and autumn 2017 leading to 
the saturation of soils and subsequent flooding. 

The application by Latvia 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 
Latvia. 

In order to minimise the time taken to mobilise the Fund, this Decision should apply 
from the date of its adoption, 
By  Decision  2018/508  of  27 March 201810,  the  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 2018. Those appropriations have only been used to a 
very limited extent. Consequently, there is scope for financing the full amount for the 

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). 
OJ L 83, 27.3.2018, p. 13. 

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present  mobilisation  through  the  reallocation  of  the  appropriations  mobilised  for  the 
payment of advances in the general budget of the Union for the financial year 2018 

HAVE ADOPTED THIS DECISION: 

Article 1 

For  the  general  budget  of  the  Union  for  the  financial  year  2018,  the  European  Union 
Solidarity  Fund  shall  be  mobilised  to  provide  the  amount  of  EUR 17 730 519  to  Latvia,  in 
commitment and payment appropriations. 

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 

For the Council 

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

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