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
Date: 2019-10-18
Institutions: Directorate-General for Budget, European Commission
Subjects: Crete, European Union Solidarity Fund, Greece, aid to disaster victims, bad weather, commitment of expenditure, emergency aid, financial aid, flood, general budget (EU)

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   EUROPEAN COMMISSION  Brussels, 18.10.2019 COM(2019) 496 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  
 
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 4 552 517  to  provide  assistance  to 
Greece further to the flooding and landslide disaster that took place in 2019. This mobilisation 
will  be  financed  in  full  through  the  partial  use  of  commitment  and  payment  appropriations 
already entered into the 2019 budget for covering advances, after deducting the already paid 
advance of EUR 455 252. An amending budget is therefore not required.  

2. 

INFORMATION AND CONDITIONS 

Between 23 and 26 February 2019 exceptionally heavy rain and storm hit Crete, in particular 
the western part of the island. The resulting floods and landslides caused the loss of human 
life  and  have  had  disastrous  consequences  for  infrastructure  and  economic  activities,  in 
particular on roads and in agriculture. 

(1) 

(2) 

(3) 

(4) 

(5) 

(6) 

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Greece  applied  for  a  contribution  from  the  EUSF  on  15 May 2018,  within  the 
deadline  of  12  weeks  after  the  first  damage  was  recorded.  The  application  was 
submitted as a ‘regional natural disaster' under Article 2(3) of the Regulation. 

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

Greece estimates the total direct damage at EUR 182,1 million. The damage caused 
on  Crete  represents  2,1 %  of  the  GDP  of  the  concerned  NUTS  2  level  region  Kriti 
and thus exceeds the threshold of EUR 129,8 million, i.e. 1,5% of regional GDP laid 
down in the Regulation. 

In its application Greece requested the payment of an advance as laid down in Article 
4a  of  the  Regulation.  On  19 July 2019  the  Commission  adopted  Implementing 
Decision C(2019) 5514 awarding a 10 % advance of EUR 455 252 on the anticipated 
financial contribution from the Fund and subsequently paid it out in full to Greece. 

In their application the Greek authorities describe in detail the situation following the 
severe  wheather  events  and  the  efforts  made  to  assist  the  affected  population.  The 
cyclone,  which  hit  Crete  from  February  23  killed  one  person  who  drowned  in  a 
stream  and  caused  serious  damage  mainly  in  the  Chania  and  Rethymnon  districts 
where  the  largest  cumulative  rain  was  recorded.  Most  damage  was  caused  to  the 
municipal and provincial road network including the Northern Motorway of Crete, in 
rural  production  to  crops  and  livestock,  but  also  in  private  homes.  Seven  bridges 
were damaged, one of which collapsed completely. Dozens of landslides and fallen 
trees  blocked  roads  and  cut  of  entire  areas.  Erosion  caused  problems  on 
embankments  and  the  destruction  of  drainage  systems.  Damage  was  also  caused  to 
the electricity network. 

Greece  estimated  the  cost  of  emergency  and  recovery  operations  eligible  under 
Article 3(2) of the Regulation at EUR 173,9 million and presented it broken down by 
type  of  operation.  The  largest  share  (over  EUR 145 million)  concerns  the  costs  to 

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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(7) 

(8) 

(9) 

(10) 

(11) 

restore  the  transport  infrastructure  (roads  and  bridges),  followed  by  the  cost  of 
cleaning up operations of EUR 20 million. 

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

The  affected  region  is  part  of  the  'transition  regions'  under  the  European  Structural 
and Investment Funds (2014-2020). In their application the Greek authorities did not 
signal  to  the  Commission  the  intention  to  reallocate  funding  from  the  ESI  Funds 
programmes towards recovery measures. 

Greece did not activate the Union Civil Protection Mechanism.  

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

In the context of the implementation of Directive 2007/60/EC on the assessment and 
management of flood risks, the following actions were completed: The Preliminary 
Flood Risk Assessment Report (March 2012), Identification of the High Risk Flood 
Potential Areas in the country's 14 Water Districts and an update of the Preliminary 
Flood  Risk  Assessment  Report  (November  2012).  The  Preliminary  Flood  Risk 
Assessment for the Evros river basin was updated (November 2014). Flood and Risk 
Hazards for the 14 Water Chambers of the Country (March 2017) were completed. 
The Flood Risk Management Plans of all Water Bodies of the country, including the 
River Basin Hazards Flood Risk Management Plan for Crete.  

2.5 

Conclusion 

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

3. 

FINANCING FROM THE EUSF ALLOCATIONS 2019 

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. 

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 %. 

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3 

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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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 Greece, the calculation of the financial contribution from 
the EUSF, based on the estimate of total direct damages caused is as follows: 

Member 
States 

GREECE 

Qualification 
of disaster 

Total direct 
damage 

Major disaster 
threshold 

2,5% of direct 
damage up to 
threshold  

(million EUR) 

(million EUR) 

(EUR) 

6% of direct 
damage 
above 
threshold 

(EUR) 

Total amount 
of aid proposed 

Advances 
paid 

(EUR) 

(EUR) 

Regional 
(Art. 2(3)) 

TOTAL 

182,1 

1 086,1 

4 552 517 

- 

4 552 517 

455 252 

4 552 517 

455 252 

In  accordance  with  Article  10(1)  of  the  MFF  regulation,  the  total  amount  available  for  the 
mobilisation of the EUSF at the beginning of 2019 was EUR 851 082 072, being the sum of 
the  2019  allocation  of  EUR 585 829 691  plus 
the  remaining  2018  allocation  of 
EUR 265 252 381 that remained unspent and was carried over to 2019. 

The amount that may be mobilised at this stage  of the  year 2019 is  EUR 557 530 278. This 
corresponds to the total amount available for the mobilisation of the EUSF at the beginning of 
the  previous  mobilisation4  (EUR 293 551 794).  In 
2019  (EUR 851 082 072),  minus 
accordance with Article 10(1) of the MFF Regulation , 25 % of the original 2019 allocation 
needs to be retained until October 2019. However, as the payment to Greece will occur after 1 
October, the provision is not relevant for this case.  

Amount currently available under the Solidarity Fund: 

Annual allocation of 2019   

Plus unspent amount of 2018 allocation carried over to 2019 

Minus amount mobilised for Romania, Italy and Austria (AB 3) 

TOTAL availability until December 2019  

EUR 585 829 691 

+ EUR 265 252 381 

- EUR 293 551 794 

EUR 557 530 278 

4 

Texts adopted P9_TA-PROV(2019)0013 and P9_TA-PROV(2019)0014. 

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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 

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 Fund5, 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 management6, and in particular point 11 thereof, 

Having regard to the proposal from the European Commission, 

Whereas: 

(1) 

(2) 

(3) 

(4) 

(5) 

(6) 

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 
1311/20137. 

On  15 May 2019  Greece  submitted  an  application  to  mobilise  the  Fund,  following 
exceptionally heavy rain and storm which hit Crete between 23 and 26 February 2019 
and led to floods and landslides. 

The application by 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) 2019/277 of the European Parliament and of the Council8, 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  2019.  Those 
appropriations  have  only  been  used  to  a  very  limited  extent.  Consequently,  there  is 
scope  for  financing  the  full  amount  for  the  present  mobilisation  through  the 
reallocation of the appropriations available for the payment of advances in the general 
budget of the Union for the financial year 2019. 

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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 54, 22.2.2019, 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  2019,  the  European  Union 
Solidarity  Fund  shall  be  mobilised  to  provide  the  amount  of  EUR 4 552 517  to  Greece,  in 
commitment and payment appropriations. 

The  amount  referred  to  in  the  first  paragraph  shall  be  financed  from  the  appropriations 
mobilised for the payment of advances in the Union budget for the financial year 2019. The 
appropriations available for the payment of 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 

For the Council 

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

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