ECCE BRUSSELS BRIEF

ECCE BRUSSELS BRIEF – AUGUST 2005

NATURAL DISASTERS: WHAT IS THE EUROPEAN UNION SOLIDARITY FUND?

The European Union Solidarity Fund (EUSF) was created after the summer 2002 floods which wreaked havoc in Central Europe. The fund entered into force on 15 November 2002 and is open to EU Member States and countries negotiating accession (Romania/Bulgaria). The amount of funding available varies from year to year, depending on the occurrence of disasters. In 2002 this was EUR 728 million; in 2003, EUR 107.1 million and in 2004, EUR 19.6 million.

Financial aid is provided upon request by affected countries for emergency measures when there is a major natural disaster. ‘Major’ is defined as being direct damage above € 3 billion (at 2002 prices) or 0.6% of the gross national income, whichever is the lower. There are two exceptions where funding may be provided even if these thresholds are not met. The first is for a neighbouring State that is affected by the same major disaster. The second is for extraordinary regional disasters which affect the majority of a region’s population and have serious and lasting effects on the region’s economic stability and living conditions. Funding for regional disasters is limited to a maximum of 7.5% of the EUSF’s annual budget which may not exceed € 1 billion per year. In other words, regional funding will not exceed € 75 million in any given year.

In principle EUSF payments are limited to finance emergency operations undertaken by the public authorities to relieve non-insurable damages (such as rescue services, putting infrastructures back in operation, provisional accommodation, cleaning up etc).

To receive aid, national authorities must submit an application to the Commission no later than 10 weeks after the first damage. The Commission is responsible for the assessment procedure, evaluation on need to activate the EUSF and calculation of the amount of any aid. The Commission then proposes mobilisation of the Fund to the ‘budgetary authority’- the European Parliament and the Council of Ministers. Aid is paid in one single instalment after the beneficiary State has signed an implementation agreement. The beneficiary State must use the grant within one year after date of receipt and return any excess monies after that. It must report on financial execution of the grant and provide detail on preventive measures introduced or proposed to limit damage or avoid a recurrence of similar disasters as far as is deemed possible.

EU Solidarity Fund Applications since 2002

(last update 26/08/05)

Year

Country

Nature of the disaster

Damage
(million €)

Category

Aid granted
(million €)

Receipt of EUSF aid on national level^[1]

2
0
0
2

Flooding

2,900

major

134

27/12/02

Flooding

2,300

major

129

13/1/03

Flooding (Le Gard)

835

regional

27/12/02

Flooding

9,100

major

444

29/12/02

Total aid 2002

728

2
0
0
3

Oil spill (Prestige)

436

regional

8.626

29/03/2004

Earthquake (Molise/Apulia)

1,558

regional

30.826

11/03/2004

Volcanic eruption (Etna)

894

regional

16.798

11/03/2004

Flooding (North Italy)

1,900

(major)

Rejection

n/a

Adverse winter weather

Not clear

(major)

Rejection

n/a

Forest fires

1,228

major

48.539

02/12/2003

Forest fires (Southern France)

531

(regional)

Rejection

n/a

Forest fires (Portuguese border)

bordering country

1.331

06/09/2004 (payment date)

Flooding

major

0.961

12/11/2004 (payment date)

Flooding (Friuli Venezia-Giulia)

525

regional

Rejection

n/a

Total aid 2003

107.081

2
0
0
4

Flooding (Rhone delta)

785

regional

19.625

07/07/2004

Flooding (Malaga)

(regional)

Rejection

n/a

3-9

Forest fires (7 applications)

(480)

(regional)

all 7 rejection

n/a

Flooding

(regional)

Rejection

n/a

Earthquake

(regional)

withdrawn

n/a

Total aid 2004

19.625

Year

Country

Nature of the disaster

Damage
(million €)*

Category*

Aid granted
(million €)

Receipt of EUSF aid on national level

2
0
0
5

Storm (Tatras)

202,733

major

5.668 m€ proposed**

Flooding (Sardinia)

223
(over-estimated)

(regional)

Rejection

Storm

47.868

major

~ 1.3m€ proposed**

Storm

192.590

major

~ 9,5m€ proposed**

Storm

2297.313

major

~ 81,7 m€ proposed**

Storm

15.156

neighbouring country

~ 0.38m€ proposed**

Evros flooding

(134.967)

(regional)

pending

Spring flooding

(488.730)

(major)

pending

Spring flooding

(75)

(regional)

pending

Summer flooding

(234)

(major)

pending

Summer flooding

application announ-ced for ~10/9/05

Total aid 2005

Grand total of aid granted since 2002

€ 854.706 million

*Data in italics are subject to verification by the Commission

** Positive Commission decision taken, approval of corresponding budget appropriations by Parliament and Council pending

Statistical overview

Total n° of applications received since 2002 of which major disasters regional disasters neighbouring country	35 14 19 2	40 % of applications 54 % 6 %
Applications accepted Applications rejected Applications withdrawn Decision pending	16 14 1 4	46 % of applications 40 % 3 % 11 %

Further information: http://europa.eu.int/comm/regional_policy/funds/solidar/solid_en.htm