Brussels, 28/08/2002 (Agence Europe) - On Wednesday, the European Commission proposed that a new budgetary allocation of EUR 500 million to 1 billion should be set up in order to face up to the natural, technological or environmental disasters in the EU and also in candidate countries. It confirmed, moreover, that it was authorising the Member States concerned (Germany and Austria) to modify the Structural Fund programmes for measures relating to flooding and has adopted the regulation allowing Germany to rapidly receive EUR 515 million in agricultural aid (see also yesterday's EUROPE, p.4). The Committee of Permanent Representatives of the Member States (Coreper) is to meet on Thursday to examine this issue on the basis of suggestions by the Commission.
Creation of a new "disaster" reserve within the budget: This budget, which could take the form of a new emergency reserve, or a new flexibility instrument, requires conclusion of an interinstitutional agreement, the adoption of a legal base and the creation of a budgetary line, a procedure that could take up to six or nine months. The Commission has, however, undertaken to make at least EUR 500 million available from this year on by using certain credits so far unused under the budget 2002. The Commission suggests setting up a new flexibility instrument that would not, unlike the other solution, require revision of the financial perspectives.
During a press conference, Romano Prodi explained that this new credit line would make it possible to provide emergency aid to each region affected by a major disaster. "It would be just the right kind of an expression of European solidarity that is needed today", he declared, going on to add that, with the agreement of Parliament and Council, "this fund could become operational very soon and money coming from it could be used already to compensate the damage caused by the recent flooding". Action financed would concern the reconstruction of infrastructure destroyed in the field of electricity, water, telecommunications and transport, said Mr Prodi. He went on to specify that this line of funding could be created in the context of the current financial perspectives and without affecting the 1.27% ceiling of spending decided at the European Council in Berlin, in 1999.
Several billion euros in Structural Funds will be redistributed: Even if the arrangements and the details are still vague, several billion euros could be made available to compensate for damage through a redistribution of money from Structural Funds, said Romano Prodi, who stressed that the Commission pledged to take the decisions needed as quickly as possible with regard to amending the programmes. The question of using the "performance reserve" of 4%, which would allow Germany to receive EUR 1.2 billion (created in 2000 for mid-term rewards, therefore in 2003, for the most successful Structural Fund programmes) would still be under examination, probably because of the political problem that would arise (this could cause a precedent).
Furthermore, the Commission announced a series of new measures that could be taken in favour of Germany and Austria (see also yesterday's EUROPE):
Transport and energy: reallocation of funds not allocated in the field of trans-European networks (EUR 11 million) and energy (EUR 5.9 million). The countries concerned could also use for reconstruction projects EUR 79.7 million (Germany) and EUR 14.4 million (Austria) foreseen under multiannual programmes.
Competition: The Commission is ready to approve State aid to repair up to 100% of the damage caused by flooding.
Public procurement: Possibility of following accelerated procedures and, in cases where the Member State can prove exceptional circumstances, possibilities for being dispensed from the obligation of publishing a market notice.
Civil protection: Coordination of assistance and information in the context of the "Monitoring and Information Centre" (MIC) and the forthcoming adoption of a European risk prevention strategy.
We recall that the Czech Republic and Slovakia could obtain funding that had not been spent hitherto (in the ISPA and PHARE programmes) and that the Commission has pledged to double the advance payments received by these countries under the SAPARD pre-accession agricultural funding scheme.