Brussels, 06/09/2002 (Agence Europe) - On Wednesday, the European Commission is expected to adopt a proposal to remove the legal obstacles to the setting up of a special aid fund for natural, technological and environmental disasters (the new fund itself was announced last week). The proposal set outs a new interinstitutional agreement to be signed by the three institutions once the Council and Parliament have agreed to it. The Commission is suggesting that the fund have a budget of EUR 500 million in 2002 and up to EUR 1 billion in following years.
The Commission is proposing that the Budgetary Authority (Council and Parliament) agree to the option of a new flexibility instrument rather than the more complicated option legally and politically of creating an emergency reserve (under Heading 6 of the Financial Perspectives). In fact, setting up an emergency reserve requires amendment of the decision on Own Resources, and also of the Financial Perspectives.
The new proposal will first be considered by the Council's Budget Committee before being sent to the EU Member States' Permanent Representatives Committee (COREPER) on 18 September. To take the initiative, the European Parliament's Budget Committee will be meeting on Wednesday to vote through an amendment to the draft Supplementary and Amending Budget (SAB) No. 4 2002 to stipulate earmarking EUR 1 billion this year in compensation for flood victims. The draft SAB (not yet adopted) concerns a further EUR 70 million in aid for Afghanistan in 2002 (see Europe of 22/23 July, p.9). Parliament may approve the creation of the fund at its Strasbourg plenary on 23/26 September.
The Commission is expected to adopt two other technical proposals on 18 September: one on the choice of legal base setting out the operational details and criteria for implementing the fund; and another creating two new budget lines, one under Heading 2 (Structural Actions) or Heading 3 (Internal Policies) and the other under Heading 7 (pre-accession) to allow candidate countries access to the fund.