Procedure : 2019/0183(COD)
Document stages in plenary
Document selected : A9-0020/2019

Texts tabled :

A9-0020/2019

Debates :

Votes :

PV 24/10/2019 - 8.4
CRE 24/10/2019 - 8.4

Texts adopted :

P9_TA(2019)0045

<Date>{21/10/2019}21.10.2019</Date>
<NoDocSe>A9-0020/2019</NoDocSe>
PDF 197kWORD 76k

<TitreType>REPORT</TitreType>     <RefProcLect>***I</RefProcLect>

<Titre>on the proposal for a regulation of the European Parliament and of the Council amending Council Regulation (EC) No 2012/2002 in order to provide financial assistance to Member States to cover serious financial burden inflicted on them following a withdrawal of the United Kingdom from the Union without an agreement</Titre>

<DocRef>(COM(2019)0399 – C9‑0111/2019 – 2019/0183(COD))</DocRef>


<Commission>{REGI}Committee on Regional Development</Commission>

Rapporteur: <Depute>Younous Omarjee</Depute>

AMENDMENTS
DRAFT EUROPEAN PARLIAMENT LEGISLATIVE RESOLUTION
 EXPLANATORY STATEMENT
 LETTER OF THE Committee on Budgets
 PROCEDURE – COMMITTEE RESPONSIBLE
 FINAL VOTE BY ROLL CALL IN COMMITTEE RESPONSIBLE

DRAFT EUROPEAN PARLIAMENT LEGISLATIVE RESOLUTION

on the proposal for a regulation of the European Parliament and of the Council amending Council Regulation (EC) No 2012/2002 in order to provide financial assistance to Member States to cover serious financial burden inflicted on them following a withdrawal of the United Kingdom from the Union without an agreement

(COM(2019)0399 – C9‑0111/2019 – 2019/0183(COD))

(Ordinary legislative procedure: first reading)

The European Parliament,

 having regard to the Commission proposal to Parliament and the Council (COM(2019)0399),

 having regard to Article 294(2) and the third paragraph of Article 175 of the Treaty on the Functioning of the European Union, pursuant to which the Commission submitted the proposal to Parliament (C9‑0111/2019),

 having regard to Article 294(3) of the Treaty on the Functioning of the European Union,

 after consulting the European Economic and Social Committee,

 after consulting the Committee of the Regions,

 having regard to Rule 59 of its Rules of Procedure,

 having regard to the letter of the Committee on Budgets,

 having regard to the report of the Committee on Regional Development (A9-0020/2019),

1. Adopts its position at first reading hereinafter set out;

2. Calls on the Commission to refer the matter to Parliament again if it replaces, substantially amends or intends to substantially amend its proposal;

3. Instructs its President to forward its position to the Council, the Commission and the national parliaments.

<RepeatBlock-Amend><Amend>Amendment  <NumAm>1</NumAm>

<DocAmend>Proposal for a regulation</DocAmend>

<Article>Recital 4</Article>

 

Text proposed by the Commission

Amendment

(4) To mitigate the economic impact of the withdrawal of the United Kingdom from the Union without an agreement and to show solidarity with the most affected Member States in such exceptional circumstances, Regulation (EC) No 2012/2002 should be amended to support related public expenditure.

(4) To mitigate the economic and social impact of the withdrawal of the United Kingdom from the Union without an agreement and to show solidarity with the most affected Member States in such exceptional circumstances, Regulation (EC) No 2012/2002 should be amended to support related public expenditure.

</Amend>

<Amend>Amendment  <NumAm>2</NumAm>

<DocAmend>Proposal for a regulation</DocAmend>

<Article>Recital 5</Article>

 

Text proposed by the Commission

Amendment

(5) As this is an exceptional use of the Fund, its assistance to mitigate serious financial burden, inflicted on the Member States as a direct consequence of the withdrawal of the United Kingdom from the Union without an agreement, should be targeted and limited in time to safeguard the Fund’s original rationale and its capacity to respond to natural disasters.

(5) As this is an exceptional use of the Fund, its assistance to mitigate serious financial burden, inflicted or to be inflicted on the Member States in preparation for, or as a direct consequence of, the withdrawal of the United Kingdom from the Union without an agreement, should be targeted and limited in time to safeguard the Fund’s original rationale and its capacity to respond to natural disasters.

</Amend>

<Amend>Amendment  <NumAm>3</NumAm>

<DocAmend>Proposal for a regulation</DocAmend>

<Article>Recital 8</Article>

 

Text proposed by the Commission

Amendment

(8) To maintain the availability of the Fund for natural disasters, its original purpose, a budgetary ceiling for support related to the withdrawal of the United Kingdom from the Union without an agreement should be established.

(8) Considering that a reasonable budget needs to be provided in order to maintain the availability of the European Union Solidarity Fund for natural disasters, other additional means need to be made available to Member States and regions to help them limit the impact of a potential withdrawal of the United Kingdom from the Union without an agreement, for example by way of the EGF or other ad hoc financial instruments.

</Amend>

<Amend>Amendment  <NumAm>4</NumAm>

<DocAmend>Proposal for a regulation</DocAmend>

<Article>Recital 9</Article>

 

Text proposed by the Commission

Amendment

(9) Assistance from the Fund to mitigate serious financial burden inflicted on the Member States as a consequence of the withdrawal of the United Kingdom from the Union without an agreement should be subject to the same rules for implementation, monitoring, reporting, control and audit as any other interventions of the Fund. In addition, given the broad scope of public expenditure potentially eligible for support, it is important to ensure that other provisions of EU law, in particular the State aid rules, are respected.

(9) Assistance from the Fund to mitigate serious financial burden inflicted or which may be inflicted on the Member States in preparation for, or as a consequence of, the withdrawal of the United Kingdom from the Union without an agreement should be subject to the same rules for implementation, monitoring, reporting, control and audit as any other interventions of the Fund. In addition, given the broad scope of public expenditure potentially eligible for support, it is important to ensure that other provisions of EU law, in particular the State aid rules, are respected.

</Amend>

<Amend>Amendment  <NumAm>5</NumAm>

<DocAmend>Proposal for a regulation</DocAmend>

<Article>Article 1 – paragraph 1 – point 3</Article>

<DocAmend2>Regulation (EC) No 2012/2002</DocAmend2>

<Article2>Article 3a – paragraph 2</Article2>

 

Text proposed by the Commission

Amendment

(2) The available appropriations for this goal shall be limited to half of the maximum available amount for the Fund intervention for the years 2019 and 2020.

(2) The available appropriations for this goal shall be limited to 30 % of the maximum available amount for the Fund intervention for the years 2019 and 2020.

</Amend>

<Amend>Amendment  <NumAm>6</NumAm>

<DocAmend>Proposal for a regulation</DocAmend>

<Article>Article 1 – paragraph 1 – point 3</Article>

<DocAmend2>Regulation (EC) No 2012/2002</DocAmend2>

<Article2>Article 3a – paragraph 3</Article2>

 

Text proposed by the Commission

Amendment

(3) Such assistance shall cover a part of the additional public expenditure caused directly by the withdrawal without an agreement and incurred exclusively between the date of the withdrawal without an agreement and 31 December 2020 ("financial burden").

(3) Such assistance shall cover a part of the additional public expenditure incurred exclusively between 1 January 2019 and 31 December 2020 in preparation for, or as a consequence of, a withdrawal without an agreement ("financial burden").

</Amend>

<Amend>Amendment  <NumAm>7</NumAm>

<DocAmend>Proposal for a regulation</DocAmend>

<Article>Article 1 – paragraph 1 – point 3</Article>

<DocAmend2>Regulation (EC) No 2012/2002</DocAmend2>

<Article2>Article 3a – paragraph 4</Article2>

 

Text proposed by the Commission

Amendment

(4) A Member State shall be eligible to apply for assistance under this Article, if the financial burden it has suffered is estimated to be either over EUR 1 500 000 000 in 2011 prices, or more than 0.3 % of its GNI.

(4) A Member State shall be eligible to apply for assistance under this Article, if the financial burden it has suffered is estimated to be either over EUR 750 000 000 in 2011 prices, or more than 0,15 % of its GNI.

</Amend>

<Amend>Amendment  <NumAm>8</NumAm>

<DocAmend>Proposal for a regulation</DocAmend>

<Article>Article 1 – paragraph 1 – point 3</Article>

<DocAmend2>Regulation (EC) No 2012/2002</DocAmend2>

<Article2>Article 3 b - paragraph 1</Article2>

 

Text proposed by the Commission

Amendment

(1) Assistance provided under Article 3a shall cover only the financial burden borne by a Member State compared to the situation where an agreement between the Union and the United Kingdom would have been concluded. Such assistance may be used, for example, to provide support to businesses affected by the withdrawal without an agreement, including support to State aid measures for those businesses and related interventions; measures to preserve existing employment; and to ensure the functioning of border, customs, sanitary and phytosanitary controls, including additional personnel and infrastructure.

(1) Assistance provided under Article 3a shall cover only the financial burden borne by a Member State compared to the situation where an agreement between the Union and the United Kingdom would have been concluded. Such assistance may be used, for example, to provide support to businesses and workers affected by the withdrawal without an agreement, including support to State aid measures for those businesses and related interventions; measures to preserve existing employment; and to ensure the functioning of border, customs, sanitary and phytosanitary controls, including additional personnel and infrastructure.

</Amend>

<Amend>Amendment  <NumAm>9</NumAm>

<DocAmend>Proposal for a regulation</DocAmend>

<Article>Article 1 – paragraph 1 – point 3</Article>

<DocAmend2>Regulation (EC) No 2012/2002</DocAmend2>

<Article2>Article 3 b – paragraph 6 a (new)</Article2>

 

Text proposed by the Commission

Amendment

 

(6 a) Expenditure eligible for financing under the European Globalisation Adjustment Fund shall not be financed under this Regulation.

</Amend>

<Amend>Amendment  <NumAm>10</NumAm>

<DocAmend>Proposal for a regulation</DocAmend>

<Article>Article 1 – paragraph 1 – point 6</Article>

<DocAmend2>Regulation (EC) No 2012/2002</DocAmend2>

<Article2>Article 4 a – paragraph 1</Article2>

 

Text proposed by the Commission

Amendment

(1) The responsible national authorities of a Member State may submit a single application to the Commission for a financial contribution from the Fund in accordance with Article 3a by 30 April 2020 at the latest.  The application shall include, as a minimum, all relevant information on the financial burden inflicted on that Member State. It shall describe the public measures taken in response to the withdrawal without an agreement specifying their net cost until 31 December 2020 and the reasons why that net cost could not have been avoided through preparedness measures. It should also include the justification concerning direct effect of the withdrawal without an agreement.

(1) The responsible national authorities of a Member State may submit a single application to the Commission for a financial contribution from the Fund in accordance with Article 3a by 30 June 2020 at the latest. The application shall include, as a minimum, all relevant information on the financial burden inflicted on that Member State. It shall describe the public measures taken in preparation for and/or in response to the withdrawal without an agreement specifying their net cost until 31 December 2020. It should also include the justification concerning direct effect of the withdrawal without an agreement.

</Amend>

<Amend>Amendment  <NumAm>11</NumAm>

<DocAmend>Proposal for a regulation</DocAmend>

<Article>Article 1 – paragraph 1 – point 6</Article>

<DocAmend2>Regulation (EC) No 2012/2002</DocAmend2>

<Article2>Article 4 a – paragraph 2</Article2>

 

Text proposed by the Commission

Amendment

(2) The Commission shall prepare guidance on how to access and implement the Fund effectively. The guidance shall provide detailed information on the preparation of the application, and the information to be submitted to the Commission, including on the evidence to be provided concerning the financial burden inflicted. The guidance shall be made public on the websites of the relevant Directorate Generals of the Commission and the Commission shall ensure its wider dissemination to the Member States.

(2) The Commission shall prepare guidance by 31 December 2019 on how to access and implement the Fund effectively. The guidance shall provide detailed information on the preparation of the application, and the information to be submitted to the Commission, including on the evidence to be provided concerning the financial burden inflicted. The guidance shall be made public on the websites of the relevant Directorate Generals of the Commission and the Commission shall ensure its wider dissemination to the Member States.

</Amend>

<Amend>Amendment  <NumAm>12</NumAm>

<DocAmend>Proposal for a regulation</DocAmend>

<Article>Article 1 – paragraph 1 – point 6</Article>

<DocAmend2>Regulation (EC) No 2012/2002</DocAmend2>

<Article2>Article 4 a – paragraph 3</Article2>

 

Text proposed by the Commission

Amendment

(3) After 30 April 2020, the Commission shall assess on the basis of the information referred to in paragraphs 1 and 2, for all applications received, whether the conditions for mobilising the Fund are met in each case and shall determine the amounts of any possible financial contribution from the Fund within the limits of the financial resources available.

(3) After 30 June 2020, the Commission shall assess on the basis of the information referred to in paragraphs 1 and 2, for all applications received, whether the conditions for mobilising the Fund are met in each case and shall determine the amounts of any possible financial contribution from the Fund within the limits of the financial resources available.

</Amend>

<Amend>Amendment  <NumAm>13</NumAm>

<DocAmend>Proposal for a regulation</DocAmend>

<Article>Article 1 – paragraph 1 – point 6</Article>

<DocAmend2>Regulation (EC) No 2012/2002</DocAmend2>

<Article2>Article 4a – paragraph 4</Article2>

 

Text proposed by the Commission

Amendment

(4) Assistance from the Fund shall be awarded to the Member States meeting the eligibility criteria, taking into account the thresholds specified in Article 3a(4), at a rate of up to 5% of the inflicted financial burden, and within the limits of the budget available. In the event that the budget available should prove insufficient, the aid rate shall be proportionately reduced.

(4) Assistance from the Fund shall be awarded to the Member States meeting the eligibility criteria, taking into account the thresholds specified in Article 3a(4), at a rate of up to 10 % of the inflicted financial burden, and within the limits of the budget available. In the event that the budget available should prove insufficient, the aid rate shall be proportionately reduced.

</Amend>

<Amend>Amendment  <NumAm>14</NumAm>

<DocAmend>Proposal for a regulation</DocAmend>

<Article>Article 1 – paragraph 1 – point 6</Article>

<DocAmend2>Regulation (EC) No 2012/2002</DocAmend2>

<Article2>Article 4a - paragraph 6</Article2>

 

Text proposed by the Commission

Amendment

6) The decision to mobilise the Fund shall be taken jointly by the European Parliament and the Council as soon as possible after the submission of the proposal by the Commission. The Commission, on the one hand, and the European Parliament and the Council, on the other hand, shall endeavour to minimise the time taken to mobilise the Fund.

6) The decision to mobilise the Fund shall be taken jointly by the European Parliament and the Council as soon as possible after the submission of the proposal by the Commission. The Commission, on the one hand, and the European Parliament and the Council, on the other hand, shall endeavour to minimise the time taken to mobilise the Fund and shall commit to proposing, in as short a time as possible, a purpose-made instrument to tackle such emergency.

</Amend>

</RepeatBlock-Amend>

 


 

EXPLANATORY STATEMENT

 

The United Kingdom is, at the time of writing, due to withdraw from the European Union on 31 October 2019, although the precise conditions of that withdrawal are not yet clear.

 

In the absence of a withdrawal agreement, the United Kingdom will no longer be part of, or associated with, the single market or customs union. Brexit will therefore lead to considerable economic hardship, not only in the United Kingdom, but also in those parts of the remaining Member States that rely heavily on economic ties with the United Kingdom.

 

The Commission has therefore proposed to amend the regulation on the European Union Solidarity Fund.

 

First, the proposal would add Brexit to the circumstances justifying the disbursement of the Fund (the Fund currently covers only natural disasters). The Commission envisages that Member States may request to use this new branch of the EUSF for the 2019 and 2020 financial years as from 1 November 2019. Brexit compensation payments would only be possible up to the end of 2020, and only up to a maximum of 50% of the Fund’s budget, with the remainder still reserved for natural disasters.

 

Second, the proposal aims to increase advance payments out of the Fund from 10% to 25%. This change is independent of Brexit, and the Commission proposes it since it considers that current advance payments are too low, delaying efforts on the ground after natural disasters.

 

The Committee on Budgets has issued a positive opinion on these changes, and the majority of the members of the Committee on Regional Development agree that steps should be taken to allow for financial assistance for affected Member States.


 

 

 

LETTER OF THE Committee on Budgets

Mr Younous Omarjee,

Chair

Committee on Regional Development

BRUSSELS

Subject: <Titre>Opinion on financial assistance to Member States to cover serious financial burden inflicted on them following a withdrawal of the United Kingdom from the Union without an agreement</Titre> <DocRef>(COM(2019)0399 – C9‑0111/2019 – 2019/0183(COD))</DocRef>

Dear Mr Chair,

A Commission proposal for amending the European Union Solidarity Fund (EUSF) Regulation has been referred for opinion to the Committee on Budgets. I understand that the Committee on Regional Development intends to adopt a report under the simplified procedure on 2 October 2019.

The proposal aims to extend the scope of the EUSF in order to show European solidarity with the most seriously affected Member States by providing assistance from the Fund to help them bear the financial burden inflicted on them as a consequence of the withdrawal of the United Kingdom from the Union without an agreement. In line with the principle of subsidiarity, it defines clear eligibility criteria for the EUSF to be mobilised. Assistance under this instrument will therefore be confined to costs with serious repercussions on the economic and financial conditions in a given Member State.

I want to underline that the present proposal clearly confirms the Parliament’s long-standing conviction that the current budgetary framework does not provide the degree of flexibility that we need.

The Committee on Budgets unreservedly welcomes the use of EUSF funding to assist Member States in bearing the financial burden directly resulting from a no-deal Brexit, if and whenever it exceeds a Member State's budgetary ability to cope with this crisis on its own. It finds this is in line with the Fund's underlying principle of genuine EU solidarity in disaster situations. Thus, it agrees that EUSF funds could be used to cover, by way of example, the costs of setting up specific aid schemes for affected businesses and the costs to public administrations in terms of creating additional infrastructure facilities and recruiting additional personnel, at a rate of up to 5% of the inflicted financial burden. The Committee notes that the minimum eligibility thresholds for Brexit-related applications are proposed to be halved to 0.3% of GNI or EUR 1.5 billion in 2011 prices, compared to those applied in the case of a natural disaster. It welcomes the Commission proposal to to increase the level of advance payments that can be disbursed, at a Member State's request, from 10% and a maximum of EUR 30 million to 25% and a maximum of EUR 100 million, for both Brexit and non-Brexit related cases. Finally, it also notes that the total envelope set aside in the annual budget for this purpose should be increased from EUR 50 to 100 million per year, in order to ensure the timely availability of budgetary resources. The latter two proposals should hopefully contribute to making the EUSF’s system of advance payments more satisfactory and more frequently used.

One of the Committee's main concerns is that any Brexit-related intervention from the EUSF should not be at the expense of applications related to a major natural disaster, which is the Fund's original purpose. A safeguard to this effect appears to be built into the proposal by limiting the amounts available for Brexit-related applications to a maximum of 50% of the 2019 and 2020 EUSF envelopes, i.e. a maximum total of EUR 591.65 million in current prices over two years. Also, the reimbursement rate of maximum 5% may be revised downwards should the available budget prove insufficient. These provisions should ensure a balanced distribution of the funding and avoid a first-come, first-served scenario.

While the Committee on Budgets is satisfied with the legal provisions as proposed by the Commission, it wishes to be kept closely informed by the Commission of all applications received and the availability of funding under the EUSF throughout 2019 and 2020.

In conclusion, the Committee coordinators have assessed this proposal, and asked me to write to you reporting that this Committee is in favour of the amending Regulation on the European Solidarity Fund as proposed by the Commission.

Yours sincerely,

 

 

 

 

 

 

Johan Van Overtveldt


PROCEDURE – COMMITTEE RESPONSIBLE

Title

Financial assistance to Member States to cover serious financial burden inflicted on them following a withdrawal of the United Kingdom from the Union without an agreement

References

COM(2019)0399 – C9-0111/2019 – 2019/0183(COD)

Date submitted to Parliament

5.9.2019

 

 

 

Committee responsible

 Date announced in plenary

REGI

16.9.2019

 

 

 

Committees asked for opinions

 Date announced in plenary

BUDG

16.9.2019

 

 

 

Rapporteurs

 Date appointed

Younous Omarjee

3.10.2019

 

 

 

Date adopted

21.10.2019

 

 

 

Result of final vote

+:

–:

0:

33

0

4

Members present for the final vote

Pascal Arimont, Adrian-Dragoş Benea, Isabel Benjumea Benjumea, Tom Berendsen, Erik Bergkvist, Franc Bogovič, Andrea Cozzolino, Corina Crețu, Rosa D’Amato, Tamás Deutsch, Christian Doleschal, Francesca Donato, Cristian Ghinea, Peter Jahr, Manolis Kefalogiannis, Ondřej Knotek, Constanze Krehl, Elżbieta Kruk, Cristina Maestre Martín De Almagro, Pedro Marques, Andżelika Anna Możdżanowska, Niklas Nienaß, Andrey Novakov, Younous Omarjee, Alessandro Panza, Tsvetelina Penkova, Caroline Roose, Susana Solís Pérez, Valdemar Tomaševski, Monika Vana, Julie Ward

Substitutes present for the final vote

François Alfonsi, Vlad-Marius Botoş, Daniel Buda, Barbara Ann Gibson, Jan Olbrycht, Mauri Pekkarinen

Substitutes under Rule 209(7) present for the final vote

Bill Newton Dunn

Date tabled

21.10.2019

 


 

FINAL VOTE BY ROLL CALL IN COMMITTEE RESPONSIBLE

33

+

ECR

Elżbieta Kruk, Andżelika Anna Możdżanowska, Valdemar Tomaševski

EPP

Pascal Arimont, Isabel Benjumea Benjumea, Tom Berendsen, Franc Bogovič, Daniel Buda, Tamás Deutsch, Christian Doleschal, Peter Jahr, Manolis Kefalogiannis, Andrey Novakov, Jan Olbrycht

GUE

Younous Omarjee

RENEW

Vlad‑Marius Botoş, Cristian Ghinea, Ondřej Knotek, Bill Newton Dunn, Mauri Pekkarinen, Susana Solís Pérez

S&D

Adrian‑Dragoş Benea, Erik Bergkvist, Corina Crețu, Constanze Krehl, Cristina Maestre Martín De Almagro, Pedro Marques, Tsvetelina Penkova, Julie Ward

VERTS/ALE

François Alfonsi, Niklas Nienaß, Caroline Roose, Monika Vana

 

 

0

-

 

 

 

4

0

ID

Francesca Donato, Alessandro Panza

NI

Rosa D'Amato

S&D

Andrea Cozzolino

 

Key to symbols:

+ : in favour

- : against

0 : abstention

 

 

Last updated: 22 October 2019Legal notice