Brussels, 17/04/2014 (Agence Europe) - On Wednesday 16 April, MEPs confirmed their support for reform of the EU Solidarity Fund, by ratifying the agreement already reached on the subject with the Council last March. This will involve delivering European funding more rapidly to countries or regions that have been struck by natural disasters, as well as helping make the eligibility rules simpler. It will now also be possible for the European Commission to pay advance payments so that the costs of the disasters and emergency measures can be covered as soon as it is possible.
MEPs adopted by a very large majority (525 votes for, 41 against, with 12 abstentions) the report by Rosa Estaras Ferragut (EPP, Spain). The reform comes in response to the criticism that the European Solidarity Fund has been too slow to respond to demands for assistance from regions and countries struck by flooding or earthquakes. European Commissioner for Regional Policy Johannes Hahn said the vote for this reform is testimony to the EU's solidarity and sends out a strong political signal in support of reconstruction in regions that have economic and social damages with which they must contend.
Key improvements. Procedures will now be speeded up, partly because of the fact that eligibility criteria will be simpler and more visible. The public authorities will be able to present their cases more rapidly to be analysed by the European Commission. The latter will be obliged to respond to demands within a six-week timeframe. If the request is acceptable, it will have to indicate what amount of assistance can be earmarked. The member states will have 12 weeks as opposed to the current 10, to prepare and submit their respective dossiers.
The threshold for benefiting from European Solidarity Fund support has been lowered to 0.6% of the GDP of the country affected (more than €3 billion) or 1.5 percent of regional GDP if a region is involved. Outermost regions will benefit from an exception of 1%. The reform stipulates that a year and a half should be the timeframe to use the money earmarked from the fund, as opposed to the current 12 months. The money paid by the European Commission must be used by the national and regional authorities within a year and a half and not a year, which is also currently the case. It will also be possible to obtain an advance on the payments of up to 10% of the maximum of the total amount that is paid out (a €30 million maximum advance). Member states will have to demonstrate that they have taken measures to prevent the risk of natural disasters occurring. A budget of €500 million is currently earmarked for the European Solidarity Fund annually as part of the 2014-2020 multiannual financial framework. Possible surpluses can also be postponed from one year to another. (MD)