Solidarity Fund : Commission proposes ¼ 728 million

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Brussels, 13 November 2002
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Budget Commissioner Michaele Schreyer commented on today´s first mobilisation of
the Fund and the draft supplementary and amending budget: ³7KLVIXQGLVDWRWDOO\
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VR TXLFNO\´ Regional Policy Commissioner Michel Barnier, who will manage the
Fund, said: ³2YHU DQG DERYH WKHLU VLPSOH ILQDQFLDO LPSDFW , DP FRQYLQFHG WKDW
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Verheugen, Commissioner responsible for Enlargement, commented 7KH
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The latest information shows that estimates of the overall damage in Germany,
Austria and the Czech Republic remain high, but less than initially estimated: total
damage is now estimated at ¼PLOOLRQLQ*HUPDQ\DW¼PLOOLRQLQ$XVWULD
and ¼ PLOOLRQ LQ WKH &]HFK 5HSXEOLF )UDQFH KDV VXEPLWWHG DQ DSSOLFDWLRQ
estimating flood-related damage at ¼PLOOLRQ
Based on these revised estimates of the damage, the Commission is proposing
grants totalling ¼PLOOLRQLQFOXGLQJ¼PLOOLRQIRU*HUPDQ\¼PLOOLRQIRU
Austria, ¼PLOOLRQIRUWKH&]HFK5HSXEOLFDQG¼PLOOLRQIRU)UDQFH
The Fund, which has a total volume of ¼ELOOLRQDQQXDOO\FDQEHXVHGIRU
- Restoration to working order of infrastructure and plant in the fields of energy,
water and waste water, telecommunications, transport, health and education.
- Provision of accommodation and funding rescue services to meet the needs of
the population concerned.
- Securing of preventive infrastructures and measures for immediate protection of
the cultural heritage.
- Cleaning up of disaster-stricken areas, including natural zones.
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Following the floods that hit central Europe during August 2002, it was decided to set
up a new EU financial instrument to grant emergency aid to Member States and
candidate countries in the event of major disasters.
The Commission proposed an Interinstitutional Agreement (between the European
Parliament, the Council and the Commission), which would allow up to ¼ELOOLRQSHU
annum to be made available over and above the appropriate headings of the
financial perspective for emergency aid. It also proposed a Council Regulation
establishing the European Union Solidarity Fund which contains the specific
provisions and the conditions under which this Fund can be mobilised.
Political agreement on the proposals was reached between the Parliament and
Council in conciliation on 22 October 2002. The Inter-institutional Agreement was
adopted on 7 November and the legal base on 11 November 2002.
To qualify for funding, countries hit by a major disaster must give a precise appraisal
of damage caused and fulfil specific criteria which ensure that EU funds are used
where they are most needed. The Commission will be responsible for managing the
Fund. A “major disaster” means any disaster resulting in damage estimated either at
or above ¼ ELOOLRQ RU PRUH WKDQ RI WKH JURVV QDWLRQDO LQFRPH RI WKH VWDWH
concerned.
Under exceptional circumstances, a region could also benefit from assistance from
the Fund, where it has been affected by an extraordinary disaster, affecting a major
part of its population, with serious and lasting repercussions on living conditions and
the economic stability of the region. In this case, total annual assistance shall be
limited to no more than 7,5 % of the annual amount available to the Fund. Particular
focus will be on remote or isolated regions such as the ultraperipherical regions.
To ensure availability of the Fund at any time, at least one quarter of the annual
amount should remain available on 1 October each year, in order to cover needs
arising until the end of that year.
The regulation allows the Fund to be used retroactively for disasters since August of
this year. Member States, Parliament and the Commission have declared on several
occasions that financial aid from the Fund should be made available to the countries
concerned as a matter of urgency.
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