Brussels, 01/10/2002 (Agence Europe) - On Monday, the Fifteen agreed that the Solidarity Fund for natural disasters could be used for disasters that cause damage amounting to a minimum EUR 3 billion or to 0.6% of the GDP of the country affected, it was announced by Per Stig Moeller, after Monday's General Affairs Council. He also went on to say that the Fund would be used mainly for natural disasters. The Council has not, however, reached a final stance on the fund. Mr Moeller said they had made progress. Although Foreign Ministers seem to be in favour of a threshold of EUR 3 billion (the Commission was proposing 1 billion and some Member States were talking of 4 billion), they have still to settle several questions.
First of all, they must reach an agreement on the precise definition of the scope. What does "fund intended for natural disasters" mean? Would the sinking of an oil tanker, for example, come into this category? The Commission had proposed that the fund should intervene for natural disasters but also for technological and environmental disasters. The Council would like more restricted application.
The Fifteen must then decide whether they agree to make a derogation to the EUR 3 billion threshold for very outlying regions. Bearing in mind these territories, which are particularly hit by natural disasters, the Commission proposed that "under exceptional circumstances", if the population of a region is particularly badly affected, the Fund could come into play even if the damage is below the threshold. The Fifteen are said to be close to agreement on this exemption, but they specify that the fund may only be used in a very exceptional way. Although Dominique de Villepin told the press that he would ensure this fund may be used in French outlying regions, diplomatic sources say that France is among the countries that insisted on the fact that it should only be used for particularly serious disasters, since there are already national mechanisms for cyclones that frequently affect such regions.
Finally, the Council must also finalise its position on the amount to be made available for the fund (the Commission proposes EUR 1 billion annually) and is to negotiate with the European Parliament the interinstitutional agreement intended to fix this amount, as well as finalise the procedure for releasing the fund. The European Parliament must take position during its plenary session next week. Per Stig Moeller pointed out that the Council "wants the final decision to be taken before the end of October". The aim is for the fund to be operational early November. Germany and Austria, the main victims of this summer's flooding, are urging for rapid adoption and a definition of the fund that is not over-restrictive. The Netherlands has taken the opposite position. The Scandinavian countries, France and Great Britain are "cautious", says one diplomat. The dossier will be taken up again by Coreper.