REPORT on the proposal for a decision of the European Parliament and of the Council on mobilisation of the European Union Solidarity Fund, in accordance with point 26 of the Interinstitutional Agreement of 17 May 2006 between the European Parliament, the Council and the Commission on budgetary discipline and sound financial management

5.9.2013 - (COM(2013)0259 – C7‑0116/2013 – 2013/2085(BUD))

Committee on Budgets
Rapporteur: José Manuel Fernandes

MOTION FOR A EUROPEAN PARLIAMENT RESOLUTION

on the proposal for a decision of the European Parliament and of the Council on mobilisation of the European Union Solidarity Fund, in accordance with point 26 of the Interinstitutional Agreement of 17 May 2006 between the European Parliament, the Council and the Commission on budgetary discipline and sound financial management

(COM(2013)0259 – C7‑0116/2013 – 2013/2085(BUD))

The European Parliament,

–   having regard to the Commission proposal to the European Parliament and the Council (COM(2013)0259 – C7‑0116/2013),

–   having regard to the Interinstitutional Agreement of 17 May 2006 between the European Parliament, the Council and the Commission on budgetary discipline and sound financial management[1], and in particular point 26 thereof,

–   having regard to Council Regulation (EC) No 2012/2002 of 11 November 2002 establishing the European Union Solidarity Fund[2],

–   having regard to Joint Declaration of the European Parliament, the Council and the Commission, adopted during the conciliation meeting on 17 July 2008 on the Solidarity Fund,

–   having regard to the letter of the Committee on Regional Development,

–   having regard to the report of the Committee on Budgets (A7-0283/2013),

1.  Approves the decision annexed to this resolution;

2.  Instructs its President to sign the decision with the President of the Council and arrange for its publication in the Official Journal of the European Union;

3.  Instructs its President to forward this resolution, including its annex, to the Council and the Commission.

• [1]  OJ C 139, 14.6.2006, p. 1.
• [2]  OJ L 311, 14.11.2002, p. 3.

ANNEX 1: DECISION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL

of ...

on mobilisation of the European Union Solidarity Fund, in accordance with point 26 of the Interinstitutional Agreement of 17 May 2006 between the European Parliament, the Council and the Commission on budgetary discipline and sound financial management

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Interinstitutional Agreement of 17 May 2006 between the European Parliament, the Council and the Commission on budgetary discipline and sound financial management[1], and in particular point 26 thereof,

Having regard to Council Regulation (EC) No 2012/2002 of 11 November 2002 establishing the European Union Solidarity Fund[2],

Having regard to the proposal from the Commission,[3]

Whereas:

(1)      The European Union has created a European Union Solidarity Fund (the "Fund") to show solidarity with the population of regions struck by disasters.

(2)      The Interinstitutional Agreement of 17 May 2006 allows the mobilisation of the Fund within the annual ceiling of EUR 1 billion.

(3)      Regulation (EC) No 2012/2002 contains the provisions whereby the Fund may be mobilised.

(4)      Slovenia, Croatia and Austria have submitted applications to mobilise the Fund, concerning a flooding disaster.

HAVE ADOPTED THIS DECISION:

Article 1

For the general budget of the European Union for the financial year 2013, the European Union Solidarity Fund shall be mobilised to provide the sum of EUR 14 607 942 in commitment and payment appropriations.

Article 2

This Decision shall be published in the Official Journal of the European Union.

Done at Brussels,

For the European Parliament                      For the Council

The President                                                The President

• [1]               OJ C 139, 14.06.2006, p. 1.
• [2]               OJ L 311, 14.11.2002, p. 3.
• [3]               OJ C […], […], p. […]

EXPLANATORY STATEMENT

The Commission proposes to mobilise the European Solidarity Fund in favour of Slovenia, Croatia and Austria on the basis of point 26 of the Interinstitutional Agreement of 17 May 2006. The IIA allows the mobilisation of the Fund within the annual ceiling of EUR 1 billion. This is the first proposal to mobilise the Fund in 2013.

In parallel to this proposal to mobilise the Solidarity Fund in favour of Slovenia, Croatia and Austria, the Commission has presented a draft amending budget (DAB No 5/2013 of 2 May 2013) in order to enter in the 2013 budget the corresponding commitment and payment appropriations as foreseen in point 26 of the IIA.

Intense rainfall between the end of October and early November 2012 caused rivers to burst their banks flooding in wider areas of the rivers Sava, Kupa, Mura and Drava in Slovenia and in the basins of the rivers Mura, Drava and Lavant in Austria, as well as on the territory of Croatia. The floods caused damage to private and public buildings, water and waste water infrastructure, businesses and to agricultural land and forests. Subsequently, Slovenia submitted an application for financial assistance from the European Union Solidarity Fund under the major disaster criterion, whereby Croatia's and Austria's applications were submitted under the so-called 'neighbouring country criterion'. The Commission's analysis revealed that the flooding damage as presented in all three applications was caused by a single underlying meteorological condition and can therefore be accepted as a single event.

The total direct damage caused by the flooding, as estimated by the Slovenian, Croatian and Austrian authorities, amounts to EUR 359,535 million for Slovenia, EUR 11,463 million for Croatia and EUR 9,6 million for Austria. As regards Slovenia, the disaster qualifies as a “major natural disaster” in accordance with Article 2(2) of Council Regulation (EC) No 2012/2002. As regards Croatia and Austria the disaster has been qualified as "of natural origin". However, the disasters in both Croatia and Austria had the same origins as the flooding which led to the major disaster in Slovenia. Therefore, the condition set out in Article 2(2) second subparagraph of Council Regulation (EC) No 2012/2002, whereby a country affected by the same major disaster as a neighbouring country may exceptionally benefit from Solidarity Fund aid, was found to be met by the Commission.

After verifying that this application complies with the eligibility criteria of Council regulation (EC) N° 2012/2002 the Commission proposed to mobilise the EU solidarity Fund for a total amount of EUR 14 607 942.

This amount will leave at least 25% of the Fund available for allocation during the last quarter of the year, as required by Article 4(2) of EC Regulation 2012/2002.

On the basis of the applications for assistance from the Fund by Slovenia, Croatia and Austria, the calculation of Solidarity Fund aid based on the estimate of total damage caused is as follows:

Figures - Solidarity Fund                                                                                     (EUR)

Disaster	Direct damage accepted	Threshold (in million)	Amount based on 2,5%	Amount based on 6%	Total amount ofaid proposed
Slovenia flooding	359 534 838	214,021	5 350 525	8 730 830	14 081 355
Croatia flooding	11 463 479	259,805	286 587	~	286 587
Austria flooding	9 600 000	1 798,112	240 000	~	240 000
TOTAL					14 607 942

In the light of the examination of the applications, and considering the maximum possible grant from the Fund as well as the scope for reallocating appropriations under the heading requiring additional expenditure, the Commission proposes to mobilise the European Union Solidarity Fund for a total amount of EUR 14 607 942, to be allocated under heading 3b of the financial framework.

With respect to the payment appropriations, the Commission in the proposal for DAB No 2 of 2013 left an unallocated margin of EUR 14,8 million under the 2013 ceiling for payments of the multi-annual financial framework, precisely to cover these known requests for the mobilisation of the EU Solidarity Fund.

According to point 26 of the IIA of 17 May 2006, when presenting this proposal to deploy the Fund, the Commission initiates the simplified trilogue procedure in view of securing the agreement of the two arms of the Budgetary Authority on the need to use the Fund and the amount required.

According to an internal agreement with the Committee on Regional Development Committee (REGI), this committee should be associated to the process, in order to provide constructive support and contribution to the implementation of the EU Solidarity Fund. Following the assessment of the requests, the REGI committee of the European Parliament gave their views on the mobilisation of the Fund, as expressed in the letter of opinion attached to the present report.

The Rapporteur recommends the approval of the Commission proposal for a decision annexed to this report.

Summary table by heading of the Financial Framework

Financial frameworkHeading/subheading	Revised 2013 Financial framework		Budget 2013 (incl. DAB 1-4/2013)		DAB 5/2013		Budget 2013 (incl. DAB 1-5/2013)
	CA	PA	CA	PA	CA	PA	CA	PA
1. SUSTAINABLE GROWTH
1a. Competitiveness for growth and employment	15 670 000 000		16 168 150 291	12 886 628 095			16 168 150 291	12 886 628 095
Margin			1 849 709				1 849 709
1b. Cohesion for growth and employment	54 974 000 000		54 958 049 037	56 349 544 736			54 958 049 037	56 349 544 736
Margin			15 950 963				15 950 963
Total	70 644 000 000		71 126 199 328	69 236 172 831			71 126 199 328	69 236 172 831
Margin[1]			17 800 672				17 800 672
2. PRESERVATION AND MANAGEMENT OF NATURAL RESOURCES
Of which market related expenditure and direct payments	48 583 000 000		43 956 548 610	43 934 188 711			43 956 548 610	43 934 188 711
Total	61 310 000 000		60 159 241 416	58 095 492 961			60 159 241 416	58 095 492 961
Margin			1 150 758 584				1 150 758 584
3. CITIZENSHIP, FREEDOM, SECURITY AND JUSTICE
3a. Freedom, Security and Justice	1 703 000 000		1 440 827 200	1 046 033 652			1 440 827 200	1 046 033 652
Margin			262 172 800				262 172 800
3b. Citizenship	746 000 000		738 680 000	654 565 615	14 607 942	14 607 942	753 287 942	669 173 557
Margin			7 320 000				7 320 000
Total	2 449 000 000		2 179 507 200	1 700 599 267	14 607 942	14 607 942	2 194 115 142	1 715 207 209
Margin[2]			269 492 800				269 492 800
4. EU AS A GLOBAL PLAYER	9 595 000 000		9 583 118 711	6 898 914 260			9 583 118 711	6 898 914 260
Margin[3]			275 996 289				275 996 289
5. ADMINISTRATION	9 095 000 000		8 430 374 740	8 430 049 740			8 430 374 740	8 430 049 740
Margin[4]			750 625 260				750 625 260
6. COMPENSATION	75 000 000		75 000 000	75 000 000			75 000 000	75 000 000
Margin
TOTAL	153 168 000 000	144 285 000 000	151 553 441 395	144 436 229 059	14 607 942	14 607 942	151 568 049 337	144 450 837 001
Margin [5][6]			2 464 673 605	14 770 941			2 464 673 605	162 999

• [1]               The European Globalisation adjustment Fund (EGF) is not included in the calculation of the margin under Heading 1a (EUR 500 million).
• [2]               The European Union Solidarity Fund (EUSF) amount is entered over and above the relevant headings as foreseen by the IIA of 17 May 2006 (OJ C 139 of 14.6.2006)
• [3]               The 2013 margin for heading 4 does not take into account the appropriations related to the Emergency Aid Reserve (EUR 264,1 million).
• [4]               For calculating the margin under the ceiling for heading 5, account is taken of the footnote (1) of the financial framework 2007-2013 for an amount of EUR 86 million for the staff contributions to the pension scheme.
• [5]             The global margin for commitments does not take into account the appropriations related to the EGF (EUR 500 million), the EAR (EUR 264,1 million), and the staff contributions to the pensions scheme (EUR 86 million).
• [6]             The global margin for payments does not take into account the appropriations related to the EAR (EUR 80 million), and to the staff contributions to the pensions scheme (EUR 86 million).  

ANNEX 2: LETTER OF THE COMMITTEE ON REGIONAL DEVELOPMENT

Mr Alain Lamassoure

Chairman

Committee on Budgets

ASP 13E205

Brussels

Subject: Mobilisation of the EU Solidarity Fund in favour of Slovenia, Croatia and Austria

Dear Mr. Lamassoure,

The European Commission has informed the European Parliament in its proposal for a decision of the European Parliament and of the Council on the mobilisation of the EU Solidarity Fund (COM(2013)0259) that, on the basis of applications to mobilise the Fund submitted by Slovenia, Croatia and Austria, relating to flooding disasters in October/November 2012, it proposes the mobilisation of the EU Solidarity Fund estimating the damage caused per country as follows:

										(EUR)
Disaster			Direct damage accepted	Threshold (in million)		Amount based on 2,5%		Amount based on 6%		Total amount ofaid proposed
Slovenia flooding			359 534 838	214,021		5 350 525		8 730 830		14 081 355
Croatia flooding			11 463 479	259,805		286 587		~		286 587
Austria flooding			9 600 000	1 798,112		240 000		~		240 000
TOTAL										14 607 942

In the light of the examination of the applications, and considering the maximum

possible grant from the Fund as well as the scope for reallocating appropriations under the heading requiring additional expenditure, the Commission proposes to mobilise the European Union Solidarity Fund for a total amount of EUR 14 607 942, to be allocated under heading 3b of the financial framework.

In order to avoid undue delay in approving this measure which the Committee on Budgets intends to adopt as soon as possible, we are pleased to inform you that the Committee on Regional Development has no objection to the mobilisation of the EU Solidarity Fund to allocate the above mentioned amounts to the Financial Framework heading concerned, as proposed by the Commission and in accordance with the rules laid down in the Interinstitutional Agreement of 17 May 2006 and in Council Regulation (EC) No 2012/2002.

Yours Sincerely

Danuta Hübner

RESULT OF FINAL VOTE IN COMMITTEE

Date adopted	5.9.2013
Result of final vote	+: –: 0:	33 2 0
Members present for the final vote	Marta Andreasen, Zuzana Brzobohatá, Jean Louis Cottigny, Jean-Luc Dehaene, Göran Färm, José Manuel Fernandes, Eider Gardiazábal Rubial, Ingeborg Gräßle, Lucas Hartong, Jutta Haug, Monika Hohlmeier, Sidonia Elżbieta Jędrzejewska, Anne E. Jensen, Ivailo Kalfin, Jan Kozłowski, Alain Lamassoure, Giovanni La Via, George Lyon, Claudio Morganti, Jan Mulder, Juan Andrés Naranjo Escobar, Andrej Plenković, Dominique Riquet, Alda Sousa, Oleg Valjalo, Derek Vaughan, Angelika Werthmann
Substitute(s) present for the final vote	Alexander Alvaro, Maria Da Graça Carvalho, Frédéric Daerden, Paul Rübig, Peter Šťastný, Georgios Stavrakakis, Nils Torvalds, Catherine Trautmann