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 Croatia in relation to the series of earthquakes starting from 28 December 2020
Date: 2021-10-29
Institutions: Directorate-General for Budget, European Commission
Subjects: Croatia, European Union Solidarity Fund, aid to disaster victims, budget appropriation, commitment of expenditure, earthquake, emergency aid, financial aid, general budget (EU), payment appropriation

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   EUROPEAN COMMISSION  Brussels, 29.10.2021  COM(2021) 963 final 2021/0359 (BUD)  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 Croatia in relation to the series of earthquakes starting from 28 December 2020  
 
EXPLANATORY MEMORANDUM 

1. 

CONTEXT OF THE PROPOSAL 

This  decision  covers  the  mobilisation  of  the  European  Union  Solidarity  Fund  (hereinafter 
referred  to  as  ‘the  EUSF’)  in  accordance  with  Council  Regulation  (EC)  No  2012/20021 
(hereinafter  referred  to  as  ‘the  Regulation’)  for  an  amount  of  EUR 319 192 359  to  provide 
assistance to Croatia further to the series of earthquakes that occurred between 28 December 
2020 and 21 February 2021. 

This mobilisation is accompanied by DEC No 28/2021 that proposes to transfer the amount of 
EUR 277 866 852  from  the  Solidarity  and  Emergency  Aid  Reserve  (hereinafter  referred  as 
‘the  SEAR’)  reserve  line  to  the  EUSF  operational  budget  line,  both  in  commitments  and 
payments.  These  appropriations  will  be  used  for  the  payment  of  the  remaining  amount  to 
Croatia, after deducting the already paid advance of EUR 41 325 507.  

2. 

INFORMATION AND CONDITIONS 

Croatia – earthquakes starting from 28 December 2020 

2.1 
On 28 December 2020, a strong earthquake (5,0 ML seismic magnitude2 and VI-VII intensity 
of EMS3) hit the Petrinja area, with an epicentre in the vicinity of the town of Petrinja. It was 
just the foreshock of the earthquake that took  place the day after. On 29 December 2020, a 
6,2 ML magnitude earthquake hit the wider Petrinja area and caused casualties and significant 
damage.  The  most  affected  areas  were  the  towns  of  Sisak,  Petrinja  and  Glina  with  the 
surrounding  villages.  In  the  centre  of  Sisak,  90%  of  buildings  were  damaged  to  various 
degrees.  Damages  were  recorded  also  in  the  Karlovacka  and  Zagrebacka  counties.  On  30 
December 2020, several strong aftershocks of 2,7 ML – 5,2 ML have been recorded. After the 
initial  shocks,  a  series  of  aftershocks  affected  the  epicentre  area,  with  more  than  4  000 
aftershocks recorded in the first few months. 

Subsequently,  the  Republic  of  Croatia  applied  for  financial  assistance  from  the  European 
Union  Solidarity  Fund  relating  to  the  series  of  earthquakes  that  occurred  between  28 
December 2020 and 21 February 2021. 

The  Commission  services  have  carried  out  a  thorough  examination  of  the  application  in 
accordance  with  the  Regulation,  in  particular  with  Articles  2,  3  and  4  thereof.  The  most 
important elements of the assessment are set out below: 

(1) 

On  18  March  2021,  the  Republic  of  Croatia  (hereinafter  referred  to  as  ‘Croatia’) 
submitted an application for a contribution from the European Union Solidarity Fund 
(hereinafter referred to as 'EUSF') relating to the series of earthquakes starting from 
28 December 2020. 

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2 

3 

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 the Council of 15 May 2014 (OJ L 189, 27.6.2014, p. 143) and by Regulation 
(EU) No 461/2020 of the European Parliament and the Council of 30 March 2020 (OJ L 99, 31.3.2020, 
p. 9). 
ML is "Richter" seismic magnitude scale or the Local magnitude scale. 
European macroseismic scale. 

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(2) 

(3) 

(4) 

(5) 

(6) 

(7) 

(8) 

(9) 

The  application  was  submitted  within  the  twelve-week  period  after  the  first 
occurrence  of  damage  caused  by  the  disaster  and  contains  all  the  information 
required under Article 4 of the Regulation. 

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

The Croatian authorities estimate the total direct damage at EUR 5 508 740 811. This 
amount represents 10,21% of Croatia's Gross National Income (GNI), and it exceeds 
the  ‘major  disaster’  threshold  for  mobilising  the  EUSF  of  EUR 323,774 million 
(0,6% of Croatia’s GNI in 2021); therefore, the disaster qualifies as a ‘major natural 
disaster’ and thus falls within the main field of application of the Regulation. 

The total direct damage is the basis for the calculation of the amount of the financial 
contribution from the Solidarity Fund. The financial contribution may only be used 
for essential emergency operations as defined in Article 3 of the Regulation. 

In their application, the Croatian authorities describe in detail the event and the entity 
of the damage. The earthquake of 29 December 2020 that hit the wider Petrinja area 
was  of 6,2 ML magnitude and caused  seven fatalities, dozens of injured people and 
significant damage:  it was felt in a  very  wide  area, including Slovenia,  Bosnia  and 
Herzegovina and Hungary. This earthquake inflicted damage to buildings not only in 
the epicentre region but in a very wide area throughout the territory of Croatia. It also 
affected buildings previously damaged by the Zagreb earthquake of 22 March 2020 
and  resulted  in  a  significant  and  complicated  effort  to  assess  if  there  was  new 
damage  to  already  vulnerable  buildings.  In  combination  with  a  series  of  4 000 
aftershocks  recorded,  it  has  evolved  in  the  greatest  earthquake  disaster  in  modern 
years  of  Croatia.  On  4  January  2021,  the  Croatian  government  declared  a  state  of 
natural disaster (earthquake) for the area of the Sisak-Moslavina County, the Zagreb 
County and the Karlovac County. 

It is estimated that 1,55 million people (more than one-third of the total population of 
Croatia) were most severely affected by the series of earthquakes in December 2020 
and the aftershocks. The most common category of damaged dwellings were family 
homes as they constitute the biggest part of the overall housing stock. Housing sector 
constitutes 72% of all damaged buildings with  the remaining 28% dispersed across 
other  sectors.  85,25%  of  the  damaged  residential  units  are  located  in  the  Sisak-
Moslavina County. Many people were left homeless as the damage incurred by the 
housing sector is greater than the damage in all other sectors combined. 

The  earthquakes  caused  significant  damage  to  educational  infrastructure  (a  total  of 
271  buildings  were  damaged),  as  well  as  to  architectural  heritage  and  cultural 
infrastructure in the affected administrative units. The most severe damage occurred 
at the general hospital in the Sisak-Moslavina County, the main medical provider in 
the  region.  Nearly  all  hospital  buildings  in  Sisak  and  Petrinja  were  significantly 
damaged  by  the  earthquake,  making  these  buildings  unsafe  for  patients.  A  total  of 
324  buildings  used  by  the  state  administration  bodies  and  other  institutions  were 
damaged. Among the damaged buildings, six are classified as cultural heritage. 

The independent assessment carried out by the Commission services has confirmed 
the affected area as well as the overall number of the exposed population declared in 
the  application.  The  activation  of  the  EC  Copernicus  Emergency  Management 
Service  –  Rapid  Mapping  allowed  to  perform  analysis  of  very-high-resolution 
satellite images. The analysis confirmed the damages to the buildings in the towns of 

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Petrinja,  Sisak  and  Glina,  and  confirmed  the  spatial  distribution  of  the  damages 
declared  in  the  application.  A  dedicated  analysis  performed  by  the  Joint  Research 
Centre  established  that,  in  comparison  with  the  earthquake  of  22  March  2020  with 
the epicentre closer to Zagreb, the impact of the Petrinja earthquake is significantly 
higher (almost the double) in terms of exposed population and built-up area, but due 
to the lower reconstruction costs and the lower amount of historical value buildings 
this  has  resulted 
total  direct  damage  amount.  The 
lower 
Commission’s assessment confirmed the plausibility of the total direct damage being 
in the order of magnitude of the one estimated by the Croatian authorities. 

in  significantly 

Croatia  estimated  the  cost  of  emergency  and  recovery  operations  eligible  under 
Article 3(2) of the Regulation at EUR 1,66 billion and presented it broken  down by 
type of operation. The largest share concerns the costs for temporary accommodation 
(over  EUR  368  million),  immediate  restoration  of  affected  natural  zones  to  avoid 
immediate  effects  from  soil  erosion  (over  EUR  304  million)  and  cleaning  up  of 
disaster stricken areas (over EUR 228 million).  

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

In its application of 18 March 2021, Croatia requested the payment of an advance as 
laid down in Article 4a of the Regulation. On 23 June 2021, the Commission adopted 
Implementing  Decision  C(2021) 4648  awarding  an  advance  from  the  EUSF 
amounting to EUR 41 325 507 and subsequently paid it out to Croatia. 

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

Article 47a of the Amendments to the Croatian Construction Act, which entered into 
force on 28 December 2019, prescribes the obligation to adopt a long-term strategy 
for the renovation of the national fund of buildings, including policies and measures 
that  contribute  to  increasing  protection  against  risks  related  to  earthquakes  which 
affect the life of buildings. 

(10) 

(11) 

(12) 

(13) 

(14) 

2.2 

Conclusion 

For the reasons set out above, the disaster referred to in the application submitted by Croatia 
meets the conditions set out in the Regulation. 

3. 

FINANCING FROM THE EUSF/SEAR ALLOCATIONS 2021 

Council Regulation (EU, EURATOM) No 2020/2093 of 17 December 2020 laying down the 
multiannual financial framework for the  years 2021-20274 (hereafter "the MFF regulation"), 
and in particular Article 9 thereof allows for the mobilisation of the EUSF in the context of 
the  SEAR.  Point  10  of  the  Interinstitutional  Agreement  of  16 December 2020  between  the 
European  Parliament,  the  Council  and  the  Commission  on  budgetary  discipline,  on 
cooperation  on  budgetary  matters  and  on  sound  financial  management5  (IIA)  as  well  as  on 
new own resources, including a roadmap towards the introduction of new own resources, lays 
down the modalities for the mobilisation of the EUSF in the context of the SEAR. 

4 
5 

OJ L 433I, 22.12.2020, p. 11. 
OJ C 433I, 22.12.2020, p. 28. 

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As solidarity was the main justification for the creation of the EUSF, the Commission takes 
the view that aid should be progressive. That means that, according to established 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 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.  

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 Croatia and the estimates of the total direct damages, the 
calculation of the financial contribution from the EUSF is as follows: 

Qualification 
of disaster 

Total direct 
damage 

(EUR) 

Applied major 
disaster 
threshold  

(EUR) 

2,5% of direct 
damage up to 
the major 
disaster 
threshold 

Advance 
paid 

Total 
amount of 
aid 
proposed 

6% of 
direct 
damage 
above the 
major 
disaster 
threshold 

Major 

5 508 740 811 

323 774 000 

8 094 350 

311 098 009 

319 192 359 

41 325 507 

In  accordance  with  Article  9(2)  of  the  MFF  Regulation,  the  overall  annual  ceiling  of  the 
SEAR is EUR 1 200 000 000 in 2018 prices or EUR 1 273 450 000 in current prices. Article 
9(4) of the MFF Regulation stipulates that as of 1 September of each year, the remaining part 
of  the  amount  available  under  SEAR  may  be  used  for  assistance  by  any  of  the  SEAR 
components. Furthermore, in line with Article 9(4) of the MFF Regulation 25% of the overall 
2021 SEAR allocation (EUR 318 362 500 in current prices) had to be retained until 1 October 
2021 and became available for all the components of SEAR as of that date.  
Following  an  earlier  Mobilisation  Decision  in  20216,  the  EUSF  has  been  already  mobilised 
for a total amount of EUR 484 199 841 to provide assistance to Greece and France in relation 
to  natural  disasters  and to 20 Member States  and accession countries in  relation  to  a public 
health emergency. 

Therefore,  the  maximum  amount  available  for  mobilisation  under  the  EUSF  at  this  point  is 
EUR 359 968 632 which is enough to cover the needs under this Mobilisation decision. 

Amount currently available under the EUSF: 

Annual SEAR allocation of 2021 

Plus unspent amount of EUSF 2020 allocation carried-over to 2021 

Minus EUSF amount already mobilised in 2021 

Minus amount already mobilised by other SEAR components 

EUR 1 273 450 000 

EUR 47 981 598 

- EUR 484 199 841 

- EUR 477 263 125 

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Decision  (EU)  2021/885  of  the  European  Parliament  and  of  the  Council  of  20  May  2021  on  the 
mobilisation  of  the  European  Union  Solidarity  Fund  to  provide  assistance  to  Greece  and  France  in 
relation  to  natural  disasters  and  to  Albania,  Austria,  Belgium,  Croatia,  Czechia,  Estonia,  France, 
Germany,  Greece,  Hungary,  Ireland,  Italy,  Latvia,  Lithuania,  Luxembourg,  Montenegro,  Portugal, 
Romania, Serbia, Spain in relation to a public health emergency. 

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SEAR amount available for mobilisation 

Total amount proposed to be mobilised for Croatia 

Remaining SEAR availabilities until the end of 2021 

EUR 359 968 632 

EUR 319 192 359 

EUR 40 776 273 

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2021/0359 (BUD) 

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 
Croatia in relation to the series of earthquakes starting from 28 December 2020 

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 Fund1, and in particular Article 4(3) thereof, 

Having  regard  to  the  Interinstitutional  Agreement  of  16  December  2020  between  the 
European  Parliament,  the  Council  and  the  Commission  on  budgetary  discipline,  on 
cooperation on budgetary matters and on sound financial management as well as on new own 
resources,  including  a  roadmap  towards  the  introduction  of  new  own  resources2,  and  in 
particular point 10 thereof, 

Having regard to the proposal from the European Commission, 

Whereas: 

(1) 

(2) 

(3) 

(4) 

(7) 

1 
2 
3 

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  major  or  regional  natural 
disasters or major public health emergency. 

The financial contribution from the Fund is not to exceed the ceilings as laid down in 
Article 9 of Council Regulation (EU, Euratom) No 2020/20933. In accordance with 
Article  9(2)  and  9(4)  of  the  MFF  Regulation,  and  taking  into  account  the  previous 
mobilisations  of the Solidarity  and Emergency Aid  Reserve in  2021, the  maximum 
amount that can be mobilised by the Fund is EUR 359 968 632, which is enough to 
cover the needs under this Mobilisation Decision. 

On 18 March 2021, Croatia submitted an application to mobilise the Fund, following 
the series of earthquakes starting from 28 December 2020. 

The application submitted by Croatia meets the conditions for providing a financial 
contribution from the Fund, as laid down in Articles 2 and 4 of Regulation (EC) No 
2012/2002. 

The Fund should therefore be mobilised in order to provide a financial contribution 
to Croatia.  

OJ L 311, 14.11.2002, p. 3. 
OJ L 433I, 22.12.2020, p. 28. 
Council  Regulation  (EU,  Euratom)  2020/2093  of  17  December  2020  laying  down  the  multiannual 
financial framework for the years 2021 to 2027 (OJ L 433I, 22.12.2020, p. 11). 

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(8) 

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  2021,  the  European  Union 
Solidarity Fund shall be mobilised to provide the amount of EUR 319 192 359 to Croatia in 
commitment  and  payment  appropriations,  including  the  amount  of  EUR  41  325  507  as 
advance payment. 

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

Article 3 

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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